What European Index?

Discussion in 'Index Futures' started by billpritjr, Aug 11, 2003.

  1. If someone wanted to get a "feel" for what the US markets might do on tommorrows trading day, what European indexes would be good to monitor?

    I believe a few traders in the Market Wizards claimed to practice this....

    ideas, opinions, thoughts wanted

  2. just21


    look at the nq and es on globex, they trade overnight.
  3. I agree with zentrader, but Dax leads the way most of the time.
  4. The Dax is the most important, but there are only a handful of others, so why not just look at them all? They usually move roughly about the same, but sometimes country specific news can throw one.

    (Cac and Ftse being the other important ones)
  5. enrick71


    Fdax leading the markets, but eurostoxx50 is the liquid one with bund.

    You need the eurex feed in order to see quotes, symbols for ib are dax>future> sept; estx50>future>sept

    If you have Real tick I will post its symbols too.
  6. msfe


    Eurex on horizon: high noon for US futures marts?

    Sun August 10, 2003 01:10 PM ET By Ros Krasny CHICAGO, Aug 10 (Reuters) -

    U.S. futures exchange officials are looking forward with a mixture of fascination and dread to next year's entry of Swiss-German Eurex, the world's largest derivatives exchange, into the American market.

    "It's a lot like that old Gary Cooper movie 'High Noon'," said an official with one U.S. exchange. "We're just waiting for the outlaws to ride into town on the noon train."

    Eurex's urbane crew are far from western-style gunslingers, but players in the U.S. futures industry are anxious to learn how their European counterparts are planning a showdown. Some answers could come next month.

    Eurex spokesman Uwe Velten in Frankfurt would not discuss the exchange's strategy but said it expected to file its plans with the Commodity Futures Trading Commission, the U.S. futures regulator, by the end of September.

    But before that, the Swiss Futures and Options Association conference in Burgenstock, Switzerland, a high-profile industry gathering scheduled for Sept. 4-7, is seen as a possible venue for an announcement.

    One commonly held view is that Eurex will turn the U.S. futures industry upside down. Its model of low-cost electronic trading has been a winner in Europe and would pose a direct threat to the survival of Chicago's storied open-outcry trading floors.

    The Chicago Board of Trade, the No. 2 U.S. futures exchange, opened the door for Eurex in January when it said it would drop the trading platform it operates jointly with Eurex, known as a/c/e, at the end of this year.

    Eurex immediately shot back with plans for its own exchange, and it is expected to use a/c/e to take aim at its old partner's biggest products, U.S. Treasury futures.

    Partnering with an existing exchange, or buying one outright, may be the fastest route to a regulatory green light for a foreign exchange breaking new ground in the United States.

    "Buying a player that already has exchange status could be quickest, considering their intention to enter the market early next year," said Sang Lee, manager of securities investment for Celent Communications in Boston.

    But Steven Manaster, dean of the Leeds School of Business at the University of Colorado, said if Eurex can deliver "safety and soundness" to the CFTC's satisfaction it might opt to build from scratch.

    "This may be more of a turf battle and a market share battle than an issue of safety and soundness," said Manaster, a two-time former chief economist with the CFTC.

    Officials at several member firms of BrokerTec Futures Exchange of Jersey City, New Jersey, are convinced that Eurex plans to buy the struggling exchange.

    "It seems to be just about terms and money at this point," said the top official at one of BFE's 30 member firms.

    Hank Mlynarski, president of BrokerTec Futures Exchange, declined to comment, as did Eurex's Velten.

    A Eurex deal with BFE seems a good fit given BrokerTec's inability to gain market share in Treasury futures and the close ties of both exchanges to investment bank Goldman Sachs.

    Former BrokerTec board member Michael McErlean quit as global co-head of futures at Goldman Sachs in London to lead Eurex's U.S. operation. At the bank, he was once a colleague of Rudolf Ferscha, Eurex's ambitious chief executive officer.

    Through BrokerTec Clearing Co., BFE outsources processing services to the Board of Trade Clearing Corp., which will also be Eurex's U.S. clearing partner.

    BrokerTec Futures Exchange opened in 2001 to trade U.S. Treasury contracts similar to those at the CBOT. Despite the backing of many of Wall Street's biggest firms it has barely dented CBOT's dominant market share.

    For Eurex, CBOT contracts would complement German Bunds, the world's busiest futures contract, and other European interest rate futures such as Bobls, German five-year notes.

    "Could Eurex offer an advantage in cross-margining U.S. Treasury futures against Bunds and Bobls? One would think Eurex would gain an advantage there," one CBOT member said.


    Industry analysts expect Eurex's approach in the United States to be modeled on the success of its predecessor, Deutsche Terminboerse, in shifting trading in Bund futures to Germany from London's LIFFE exchange in 1998.

    DTB's electronic platform, cheaper and more efficient than LIFFE's trading floor, scored a decisive victory.

    Regardless of the merits of one trading platform over another, dropping the incumbent system was risky for the CBOT, one trading firm executive said.

    "Companies have spent tens of millions of dollars writing gateways and network connectivity and setting up servers to interface with the current platform," he said.

    Some 80 percent of CBOT financial futures turnover is now done via a/c/e.
  7. Hi,

    the FDAX is as liquid as the FESX. FDAX usually has a lower volume, but a single FDAX contract has a higher value than a FESX contract! If you compare the net value traded on FDAX and FESX, you come to a similar value for both of them.

  8. vega


    Just saw an ad on Monster.com for an "Electronic Exchange Officer" in Chicago !!! Said "Company Confidential" as to the employer, yet also said that if you spoke German it would be a plus, hmmmmmmmmmmmm, who could this mystery company/exchange be ???:eek: :eek: :eek: :eek: :eek: