Eurex Activity Question - Bonds and Interest Rates Trading | futures io social day trading
futures io futures trading


Eurex Activity Question
Updated: Views / Replies:2,299 / 15
Created: by xtrader100 Attachments:4

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 4  
 
Thread Tools Search this Thread
 

Eurex Activity Question

  #11 (permalink)
Trading Apprentice
London,England
 
Futures Experience: Intermediate
Platform: TT
Favorite Futures: ES,10 YR
 
Posts: 8 since Jul 2012
Thanks: 1 given, 1 received

So you are contradicting your previous post where you mention that the TY volume is "stable" compared to bunds.

My point here i guess is that while both volumes have dropped the bund drop is more serious as the volume is generally lighter therefore much less liquidity than before.


Last edited by xtrader100; July 16th, 2012 at 10:22 AM.
Reply With Quote
 
  #12 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,653 since Mar 2010
Thanks: 4,226 given, 25,602 received
Forum Reputation: Legendary


xtrader100 View Post
So you are contradicting your previous post where you mention that the TY volume is "stable" compared to bunds.

My point here i guess is that while both volumes have dropped the bund drop is more serious as the volume is generally lighter therefore much less liquidity than before.


I am not entirely contradicting my previous post. If you take into account longer maturity treasuries, than there is no decline at all. That suggests that buying interest has shifted from the 10-year notes to 30-year bonds.

If you look at the rolling monthly volume, there is no decline in the trading volume of 30-year bond futures.

This may well be explained with the large-scale asset programs, which the FED had started under its Quantitative Easing policy. The QE2 asset purchase program was completed in June 2011 and included $ 600 billion of longer-term securities. It was then followed by the maturity extension program dubbed "operation twist".

FRB: What is the Federal Reserve's maturity extension program (referred to by some as "operation twist") and what is its purpose?

The first two rounds of QE had too little impact on longer-term yield. By buying the longer term treasuries the FED probably has achieved two targets

-> increasing the price of longer term securities, thus flattening the long end of the yield curve
-> increase the market share of longer term securities compared to treasury notes

The volume in futures may have simply followed the shift in the secondary market of the underlying treasuries.

Below attached is a chart, showing that volume in bond futures has actually risen in 2012 compared to 2011. Further I have found a comprehensive paper analyzing the impact of the Operation Twist 2 on the term structure of yields.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).



Paper on Operation Twist 2:

Eurex Activity Question-torsten-ehlers-operation-twist-2.pdf

Reply With Quote
The following user says Thank You to Fat Tails for this post:
 
  #13 (permalink)
Elite Member
San Diego, CA USA
 
Futures Experience: Intermediate
Platform: NinjaTrader
Favorite Futures: ES
 
GridKing's Avatar
 
Posts: 3,650 since May 2011
Thanks: 588 given, 877 received



xtrader100 View Post
My original question was supposed to seek out a reason that I may have missed.

I take it the original answer is not the one you are looking for ....




Quoting 
FRANKFURT (Reuters) - The European Central Bank extended a shut down of its government bond purchase program to a fourth month last week, a freeze the bank hopes can be made permanent by handing the controversial role over to the euro zone's bailout fund.

http://www.deutsche-finanzagentur.de/fileadmin/Material_Deutsche_Finanzagentur/PDF/Aktuelle_Informationen/bund_fact_sheet.pdf

"Successful trading is one long journey, not a destination" Peter Borish Former Head of Research for Paul Tudor Jones speaking on conversations with John F. Carter
Reply With Quote
 
  #14 (permalink)
Trading Apprentice
London,England
 
Futures Experience: Intermediate
Platform: TT
Favorite Futures: ES,10 YR
 
Posts: 8 since Jul 2012
Thanks: 1 given, 1 received

Eurex bond volume has been down big all last week.

I would think that the latest Spanish & Greek news would've generated more volume than 550k Bunds and tiny over 200k 2YR.

US 10s have been bad too but not down to the dire Eurex levels - Yet.

If there are any other Eurex bond traders on here I would be interested to hear your thoughts.

Reply With Quote
 
  #15 (permalink)
Trading Apprentice
London,England
 
Futures Experience: Intermediate
Platform: TT
Favorite Futures: ES,10 YR
 
Posts: 8 since Jul 2012
Thanks: 1 given, 1 received

http://www.nytimes.com/2012/07/25/business/new-technology-and-tougher-rules-shaking-up-fixed-income-trading.html?_r=1

If anyone's interested I think here is a reason behind the staggering drop in interest/volume.

Reply With Quote
The following 3 users say Thank You to xtrader100 for this post:
 
  #16 (permalink)
Trading Apprentice
London,England
 
Futures Experience: Intermediate
Platform: TT
Favorite Futures: ES,10 YR
 
Posts: 8 since Jul 2012
Thanks: 1 given, 1 received

Eurex Exchange's interest rate derivatives segment totaled 33.2
million contracts (July 2011: 54.9 million). The Euro-Bund-Future
reached 13.0 million contracts, the Euro-Bobl-Future 7.6 million
contracts and the Euro-Schatz-Future 5.7 million contracts. The Euro-
BTP-Future grew by 81 percent y-o-y and totaled around 474,000
contracts; and the Short Term Euro-BTP-Future reached approximately
86,000 contracts. The Euro-OAT-Future – launched in mid April –
recorded a new monthly record with around 431,000 contracts.

Taken from the Eurex website.

Clearly a massive drop from July 2011.

Overall the average daily drop was 20% compared to July 2011

Reply With Quote

Reply



futures io > > > > Eurex Activity Question

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
What's happening at Eurex? [Edit: Eurex is trading again] Jura Reviews of Brokers and Data Feeds 13 February 23rd, 2016 03:53 PM
Sierra Chart and EUREX - Broker syd430 Sierra Chart 10 September 17th, 2011 05:54 PM
FDAX (Eurex) Broker for Ninjatrader ikeaboy Reviews of Brokers and Data Feeds 5 August 17th, 2011 10:21 PM
What's the ticker for FDAX on the EUREX? ptd26 Beginners and Introductions 6 February 8th, 2010 03:09 PM
Eurex Data Request Mftkn Traders Hideout 1 August 12th, 2009 02:34 PM


All times are GMT -4. The time now is 11:38 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-17 in 0.12 seconds with 20 queries on phoenix via your IP 54.221.73.186