Half-tick Schatz divides market
19 Apr 2004
Eurex and Chicago Board of Trade (CBoT) last week defended their respective decisions regarding the pricing of Schatz contracts. Following CBoT's decision to abandon plans to price its forthcoming German contracts in half ticks (see FO Week vol 9 no 14), Eurex announced last week that half tick pricing is to be introduced on its Schatz products. Both exchanges claimed to have been motivated by market demand.
Bob Ray, senior vice president of business development at CBoT, said: "If you're a proprietary shop looking at the half tick, you have to trade more to get something out of it. They didn't like that because they felt it increased their cost of trading - instead of...
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