Dividend futures open for trading
8 comments / May 5, 2010
The long awaited dividend futures are finally open for trading on the AEX. The trick of the trade seems simple, estimate the yearly dividend, and quote it all day. Doesn’t really move anymore.Euronext has found two liquidity providers ready to “quote” these futures. From the USA there’s Susquehanna (SIG) and from France there’s the delta 1 desk from Société Générale sending their bids and offers in the dividend future.
In theory at least, as one of these liquidity providers isn’t pulling its weight. There’s a quote for only 50 lots, with no quotes behind. And it’s a boring job in an empty shop – no single contract has been traded yet. The dividend seems to be a little more than 11 euro per year. Don’t know how that corresponds with the option market.
My colleagues tell me the girl on the picture is in a mobile phone store. Why, Jack, why?
SIG is from Ireland not USA.
The girl is bored obviously. No trading volume.
"Don't know how that corresponds with the option market"…I guess (and I hope) you are not working in a market making firm or a financial institution that deals with options or delta one products…otherwise, you should know it.
Massive trading in the Dividend Futures lately! The first transaction took place on July 15, in the Dec11 series: total volume and created open interest, 1 whole contract!
But it didn’t stop there, no no: the Dec12 series traded 50 times last week (Thursday) and we are on a roll: today another 50 are traded in the Dec13 series. And the day is still young.
The Dec13 traded at 10.85 this morning, the offer was lifted.
As I wrote, the Dec14 traded at 11.10. Again the offer was lifted. Now the waiting is on the first prof size trade.
Didn’t notice it untill I read it over here. Interesting!
SIG is an American company not Irish….
The founders are all based out of Philadelphia. The European Division may have its operations out of Ireland. But I am pretty sure the main mother company is American.