Euronext in short term illiquids
20 comments / November 19, 2009
Euronext is trumpeting the introduction of even more expiration months in ranks of certain illiquid stock options. “Supply creates demand” seems to be the spirit at the exchange.
The new short term expiration months will be the first month, a second month and a third month – next to existing the four quarterly expirations. Introduction will be November the 23th.
The following option classes will see the introduction of new expiration months:
Aalberts, BAM, Binck, Boskalis, Fugro, Heijmans, Logica, Océ, SNS, USG, Vopak and the good old Wessanen.
Good luck for all market makers in Vopak. After the weekend you’ll be quoting:
dec ’09, jan ’10, feb ’10, mar ’10, jun’10 and sep’10. Cheers!
f***in idiots
we are now awaiting the 10 years expiries…
Why Euronext does not focus in providing more quote capacity for the CMM's instead to list more expirations on illiquid stocks?
With the current technology, why need CMM's and PMM's at all. Just set maximum spreads and let everybody who wants to participate join in the fun.
i agree
I disagree. The exchange needs commitment of the market makers, also in boring or extreme volatile markets. We want screens full of quotes? Then you need CMM and PMM's.
"screen full of quotes": that market maker model promoted by "i do not know" never make sense at all.
if not look at the german stock, if there is flow at the screen Market makers will try to have the sharp quotes.
does it make sense to quote an AEX 800 P of '13 ?
Have you ever seen DAI without any quotes?
There will never be flow by retail investors to an empty screen. The AEX '13 800 Put makes sense. The Dutch market, unlike others, has a fair share of retail investors. Retail investors don't know what the real price is, they just demand a sharp quote and they are right.
NYSE Euronext European derivatives products average daily volume (“ADV”) in October 2009 of 3.9 million contracts decreased 12.9% compared to October 2008, and decreased 11.1% from September 2009. Total interest rate products ADV in October 2009 of 2.0 million contracts decreased 9.5% compared to October 2008 and total equity products ADV of 1.8 million contracts decreased 16.9% compared to October 2008.
MORE QUOTES PLEASE? Maximum spreads, no cmm/pmm, supply and demand will create thier own volume.
are telling that the Eurex quotes are not tight?, they are even sharper as the tick is 0.01 instead of 0.05, meaning the retail investor would pay even less spread.
I fully agree, not any more PMM/CMM… only max spreads for whoever wants to quote.
Trading volume declined. Well, last year's october was trading amid panic with high volumes. Now it's more quiet. What do quotes have got to do with it?
Eurex quotes can be tied, but large parts of the screen are deserted. Long term options? Nobody wants to take the risk..
,Retail investors don't know what the real price is, they just demand a sharp quote and they are right´
Do you think that they are stupid. With a little option knowledge and a formula/excel you can calculate the theo. back in 80'and 90´ you were right
tied = tight, sorry
deserted means no supply and demand.
when the market is in panic there will be supply and demand by nature. You don,t need the amsterdam market model to create volume
cmm-pmm=hoekman=legal robbery
change the tick size to 0.01 cmm/pmm is gone
Still most retail investors don't have much knoweldge about pricing of options etc. also they have little idea about trading stockoptions on Eurex while quotes are definitly on their favour there…
and who's offering Eurex quotes to retail investors? As far as I know only Interactive Brokers (+introducing brokers) and their market share is still relative small. Almost no traders are aware of the possibilties and the lower commissions compared to Euronext.
All the heavy trading ETF's/Stocks in the US trade on 1 cent option spread so less room for market makers.
quoting the vopak dec13, that should be a nightmare. just waiting for a hammer to squash your brain out. g'luck
WTF is wrong with those people?