Short Sterling on CME????

[glenogy]

anybody heard of this rumour of CME opening a short sterling product in full ticks? To combat LIFFE's disasterous move in making sterling half ticks and completely ruining the pit!!!!

 

[gooseman]

where have u heard that one?

 

[Adamus]

Why did the introduction of half-ticks ruin the pit?

Admittedly I know nothing about the short sterling pit but I am v curious.

 

[gooseman]

there is no short sterling pit.

 

[BSD]

???


Need to splurge and invest in a new calender I think.

 

[arabianights]

Why did the introduction of half-ticks ruin the pit?

Admittedly I know nothing about the short sterling pit but I am v curious.

There is no pit but half ticks (£6.25 a tick ffs) meant that spread scalpers - who provided a lot of the liquidity - found it uneconomical to continue doing so. Even scalping the outrights became a lot harder because of this.

If LIFFE really wanted to introduce half ticks they should have doubled the contract notional value. I don't think anyone would have had a problem with that.

I really hope this rumour is true. LIFFE deserve to get absolutely ****ed for their arrogance and intransigence over this, same as when they lost the bund.

 

[glenogy]

all i can say is its from a very good source

 

[gooseman]

timeframe?

 

[noshoulders]

can only assume this was a false rumour, not heard it mentioned anywhere else

 

[arabianights]

It was mentioned on elitetrader as well.

Haven't heard it from anyone reliable or in real life though!

Maybe there's a reason for that