FYI: ER2 is moving?

[torero 10]

I heard this on JC's video mentioning ICE bought emini index from CME. Instead of buying the entire exchange and all its products, it buys only one products. He thinks the market volume will dry up a bit for a while before normal volume will return. Good thing I'm expanding to other areas (Ags and Forex).

[Guest cooter]

Here's the official press release from ICE:

 

https://www.theice.com/showpr.jhtml?id=6574

 

And here's a blurb from the Chicago Tribune about it:

 

Merc loses futures to ICE | Chicago Tribune

 

Look for the CME to make a push on their S&P MidCap 400 product (which has the same tick and point value as the ER2 Russell). The ticker symbol is EMD.

 

Remember, not only the ER2 mini is currently traded at the Merc, but the pit-traded RL big contract as well. Could be interesting to see how this one will play out.

[torero 10]

I trade EMD in the past, that thing is much much wilder than ER2. Jumps all over the place, I'd be careful with slippage.

[rock 10]

hope im not effed

[torero 10]

Since we don't know how ICE handle orders and routing, slippage and spread and of course volume will be an issue in the beginning. It'll take a while for people to trade big size again until they can find how reliable the exchange is with the new index. I've never traded with ICE so I am a newbie but caution is the only thing to do when ICE takes over.

 

If not EMD is not a bad choice for ER2 traders, if volume increase to ER2 level, it may be a good replacement. I'm going to start watching it. I've actually system tested EMD and ER2, they are both very similar in results, the only different is the slippage due to lower volume.

[notouch 10]

ICE handle the most widely traded energy contract (Brent Crude) and have pioneered the all-electronic platform so I'm sure they can handle ER2 smoothly. It only costs £1 to subscribe to ICE data on IB - I don't know about other brokers and data providers.

[Dogpile 10]

hmm torero, I have traded EMD a bit too and found that while yes it does jump around, it is less likely to jump around than ER2 --- I have found it to have LESS noise than ER2.

[torero 10]

ICE handle the most widely traded energy contract (Brent Crude) and have pioneered the all-electronic platform so I'm sure they can handle ER2 smoothly. It only costs £1 to subscribe to ICE data on IB - I don't know about other brokers and data providers.

 

TS might have a problem since they don't have offer ICE (not sure of late of their european data). There are lots of TS-based ER2 traders. We'll see.

[torero 10]

dogpile, maybe it was the jerkiness or jumpy that made it looked more than it did, not sure. But I noticed it followed ER2 as well.

[mkp14 10]

Is it true?

mkp14

Created by Camtasia Studio 4

[notouch 10]

There are already at least 2 threads on this issue.

[Soultrader 12]

Thread has been merged.