THREAD:
@CMEGroup is launching micro e-mini options on Aug 31.
Below is an attempt to quantify how big of a win they could be for the exchange.
Read on for more 
$CME
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$CME launched micro e-mini futures in May 2019 -
Initial success was good, but 2020 saw the product really take off:pic.twitter.com/W5VNOIOHjz
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If we look at the relationship between equity index futures and options pre-micros, we find options volume is ~25% of corresponding futures products.
$CME micro e-mini futures ADV: ~1.7M contracts 1.7M * 25% = ~430K options contracts per day at full maturityShow this thread -
Did micro e-minis cannibalize other equity index products? The answer at a high level looks to be no - while micros have accounted for most of the growth in
$CME's equity index asset class, ex micro the group hasn't seen volumes decrease:pic.twitter.com/rWbIjosVso
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End of conversation
New conversation -
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Thoughts on The Small Exchange out of Chicago?
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It's near impossible to succeed as a startup exchange. Their main products are equity indices, treasuries, oil and metals which already have a liquid market on CME and ICE. Small size can't win by itself imo, but will need to see volumes before writing them off completely.
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