Tick size of Bobl future to be increased from half to full tick
As of 11 May 2009, the leading derivatives exchange Eurex will increase the minimum price change (tick size) for futures based on medium-term (five years) debt instrument issued by the Federal Republic of Germany (Euro-BOBL-Future) from 0.005 to 0.01 percent. The tick size of the BOBL option will remain unchanged at 0.005 percent.
Peter Reitz, member of the Eurex Executive Board, explained: “Our decision is based on an extensive consultation process with our customers. The full tick will provide market makers, such as tick traders and calendar spread specialists, with a better risk/reward profile and thus encourage quoting. This step will improve overall order book liquidity.”
