Dividend futures heading for the exit
12 comments / June 4, 2010
After exactly one month of trading, the dividendfutures on the AEX haven’t yet convinced the market. The futures opened for trading on May 3rd, and Susquehanna or SocGen is quoting these futures.Didn’t really expect turbulent trading, as the Amsterdam financial market is notorious for its unwillingness to trade new instruments other than options. The dividend futures are heading for the financial graveyard stuffed with potato-futures and currency related instruments. There hasn’t been traded any single dividend future contract yet. None. Zero.
Every disadvantage has it’s own advantage, according to Johan Cruyff. This famous quote applies to the financial market as well. Closing down this dividendfuture market can be arranged without any hassle – there is no open interest to deal with. Just switch of the light. However, Euronext would never shut down any product – as there’s hardly any cost involved in keeping a small market open.
Euronext will never close down a market like this without volume. Cost of keeping the market open are zero, and the shopkeeper is a volunteer (SIQ/SG)
Seems like this topic is just as popular as the dividendfutures itself 😉
I thought Eurex was the champion of useless product introductions, with futures on milk and butter.
http://www.eurexchange.com/trading/products/COM/AGR/overview_en.html
For some reason Euronext is not really connecting with the assetmanager/investor on new products. Result is that a lot of products/assetclasses are heavily traded in forms offered by product issuers (ETF, Sprinter, Turbo, Speeder etc.) Why not start immediately with futures on active productclasses/indicators (Gold, Oil, Inflation, etc.) I know these already exist elsewere but a good marketing with a straight forward product quoted on 0,10 by enough liquidity providers this should work.
probably they cann't close it down as a side agreement exist in which money was offered to SIG/SG to act as a MM..
As good as the Dutch firms are in MM as bad is the local trading community to diversify in new products which is also a fault of the exchange itself to promote the product
i want euronext to start listing options on all options and imc. i think their own traders would be looking for offers in any puts possible!
is it possible for euronext to list options on market making companies. i think they would trade vary actively. especially the put strikes for all options and imc
diversify in new products … promote the product" .. boy u are really disconnected from reality yah .. who wants to buy sell a dividend future contract for 11 at 12 and pay spread of 0.5 .. people in general are retarded like u .. but i am sure even u are not retarded enough to pay spread of 0.5 .. which leads me to question on the rules of trading this div future .. is it possible for two parties to trade over phone for a price of 11.5 for this future ..
which means the exchange forgot to consult the market as otherwise the market would have mentioned a spread of 0.5 should be the minimum. It seems the exchange has to go back to the basics and understand what their trading community wants…..
exchange are the biggest retards in town .. but its not surprising, a smart person using his intellect could pull lot more compensation somewhere else and so the exchange ends up with morons who know nothing how markets work and how they can facilitate it ..
so i guess you are one of the smart persons using your intellect?
do u work in the exchange .. sorry, didnt mean to offend u ..