Volumes low as systems problems hit trading
After the first four days of trading, volumes in Eurex US's
newly launched FX contracts have been very low, though growing
steadily, as the exchange has dealt with technical problems at
the market maker end in Europe.
An executive at one Eurex US FX market making firm told
FO Week that volumes have been particularly low,
especially considering the honeymoon period contracts often
experience in their early stages.
"It's hardly trading to be honest, volumes have been very
low since launch. The exchange initially announced there would
be around twenty market makers, of which I can see perhaps four
or five doing any kind of business. It's not looking good at
this stage," he said.
Satish Nandapurkar, president and CEO of Eurex US, insisted
to FO Week, however, that the marketplace looked quite
good for the fourth day and that he was pleased with early
progress. He said many market participants had expressed
pleasant surprise at the liquidity on screen and how tight the
markets looked in such a short period of time.
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