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"Fundamentally Rigged"

• by Tyler Durden

The eurodollar futures market is among the most important for the functioning of global financial markets, providing faux-credit fillers for institutions everywhere as well as critical signaling (whether reflexive or not) on the future path of interest rates (and thus what The Fed is expected to do, or will do).

So, it seems appropriate to worry when that critical credit market is over-run by chaos-producing algos who seem to have moved on from front-running stocks (because it's all buybacks all the time) to the vastly less-liquid (and notably wider tick-spreads) eurodollar market.

As The Wall Street Journal reports, over the past two months, the volume of data generated by activity in CME's Eurodollar futures soared 10-fold, according to exchange statistics.

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