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Gary:
There are many factors that have led to the current success of the emini S&P
contract. I don't think you can pin the growth rate of the contract on the
size limits alone. For example, it was only two years ago the CME opened up
their APIs to allow for more firms to broadcast price data in their front end
trading platforms.
It was only a short time before that the law was changed allowing the
European ISVs to come over to the U.S. and offer connectivity to Eurex and
LIFFE, and thus the U.S. markets.
Additionally, there has been a trend for stock traders to start trading the
emini S&P as a way to get around day trading rules on the stock side.
So there are lots of reasons for the success, especially the recent growth of
the contract.
As for the big S&P, I don't think that will be listed electronically just
yet. The CME is experiencing too much success with the current format to
have reason to fix something that does not seem to be broken. But I am sure
it will happen in time.
Regards,
John J. Lothian
Disclosure: Futures trading involves financial risk, lots of it! John J.
Lothian is the President of the Electronic Trading Division of The Price
Futures Group, Inc.
In a message dated 3/26/2002 10:37:48 AM Central Standard Time,
fritz@xxxxxxxx writes:
<< How level will it be, really? Will the electronic SP be emasculated
the same way the ES was at first, or will it be a totally open market?
> I am a firm believer in letting the market decide which is the
> best format.
Me too. But it DOES require a level playing field. The ES got off
to a much slower start than it should have. Once they took off the
size limits, it was off to the races. I hope they're smart enough to
not make that mistake again.
Gary
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