Nasdaq omx has arrived as its daily volume hits a new milestone . Despite 50% still yet to be enabled to trade this exchange their volumes and more importantly open interest grows ............... Should alarm bells be ringing at EUREX and LIFFE ? I say
so ! The introduction of FIFO in the STIRS contracts has been a great cataylst to their success as well as their insistence in finding the correct blend of traders . LIFFE and EUREX put all the monies into the HFT hat and saw this as the route to higher volumes
liquidity and profits and without a plan B have almost been to left behind . By looking after open interest NASDAQ has managed to reduce margin calls by carefully selecting the right contracts to trade ; and steeling a "arbitrage " ride on both their competitors
Indeed I can see 2014 as being the "arbitrage & aggegation " mkt for european futures where volumes and open interest will explode ; as seen in mid 1990's with EUREX and LIFFE spat . Therefore credit must go to NASDAQ for bringing this competition to the
table and finally putting an end to the PRO RATA nightmare that suited only a few HFT . The education needed now is on "aggegation " and learning that you perhaps may be filled in an exchange you perhaps you did not know traded that contract ; especially
as CME europe are about to enter the arena too ! The conclusion wil be a messy one but for 2014 the future looks arbingly bright .