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Uh...no one on this list reads "Futures Magazine" ?
They just had a huge article on this very subject....June 2008 edition(Page
68 to be specific).
The ICE volume has been anemic-at-best so far.
They anticipate that it will ramp-up at the end of the year...and that the
ICE platform can "handle it".
However, the CME's S&P Small Cap 600 contract has a .9956 correlation in
price to the Russell 2000 contract....
And of course they, being a monopoly of sorts, have offered incentives and
waived exchange fees to trade this "replacement" contract.
Bottomline: if ICE "messes-up"...they're toast as far as the Russell
contract volume goes.
Traders will go back to the proven Globex platform and the Small Cap 600
contract.
> -----Original Message-----
> From: Michael Guess [mailto:mguess@xxxxxxxxxxxxx]
> Sent: Thursday, June 12, 2008 6:37 PM
> To: Timothy Morge; omega-list@xxxxxxxxxx
> Subject: Re: Russell 2000 futures moving to ICE
>
> So, for those of us who've developed systems for trading the
> Russell, and learning its characteristics, we're now left out
> in the cold? One would think that by acquiring a significant
> product like the Russell, the ICE would want to ensure its
> success by having the necessary infrastructure.
>
> There's been almost no info out there regarding this,
> excepting Tim's insightful opinions on this list. I wonder
> why retail traders are being kept in the dark about this.
>
> I've invested years of research and trading to learn the
> Russell's personality. Starting over with one of the other
> 'minis' doesn't make me very happy, as they don't have the
> characteristics I require. I'm disappointed.
>
> At 04:51 PM 6/12/2008, Timothy Morge wrote:
> >Like Rich Dennis, I have no interest in trading a realtively high
> >volume contract that has anything to do with ICE. Their
> infrastructure
> >to support a contract with any volume to speak of is non-existent.
> >
> >The CME will list and trade the Sep 2008 russell and then be done.
> >They COULD have continued to trade and list it but chose not to. The
> >volume has been going down, the open interest has been going
> >down...find a new trading vehicle. That's my 2 cents.
>
>
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