imageFMX | Connect – www.fmxconnect.com - (Reported 9/20/2010)

ELX Snapshot: Signs of Decline

 

 

 

 

 

ELX volumes and market share are declining.

  • CME believes that trading in Treasuries on ELX is NOT legitimate.
  • ELX volume in Treasuries has been declining to less than 30k per day. Market share is now below 1.5% from a peak of 3.8% in March. Open interest market share is 0.3%.
  • ELX market share in Eurodollar volumes is just 0.25% and in open interest is 0.43%.

CME’s response to CFTC on its September 13th letter states:

“ . . . we [CME] do not believe that any legitimate trading in Treasury futures is taking place on ELX. ELX’s trading patterns and open interest movements suggest that a few traders are exchanging positions for the sole purpose of creating the appearance of active trading . . .  and if it is found that the trading has been occurring for the past year is not legitimate, but rather designed to give the appearance of legitimate volume, then this activity should be addresses and the Exchange should be sanctioned.” See attached Page 28th last paragraph.

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Source: ERDESK

 

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