Anyone want to sell 100 NYM contracts (~$5mm notional)?

I posted the headline as: 1) with the reconciliation of the tax bill, potential concerns on areas with relatively high mortgage balances and/ or relatively high state and local taxes, go from proposed to actual, and 2) to discuss how, exactly you might want to approach the issue of selling (or buying) 100 lots.  It’s the second point that I want to discuss here.

Most of the feedback I get from institutional traders about the CME market is that there’s been near no trading, and the bids and offers are only for a very small size (often 1 lot bid versus 1 lot offered) .  Few traders want to post an offering (or bid) for much larger size if a) it’s just going to sit there, and b) they have to pay attention to it throughout the day/week.  Let me borrow a concept (TaskRabbit) and suggest that you “sub-contract” your interest in buying/selling to me.  Not only am I willing to spend many more hours per week watching for changes in quotes, but as the market maker, I am more likely to get an inquiry (or know of an interest) on the other side, than many much-larger firms who don’t see a reason to dedicate resources (yet) to this effort.  I’m not looking to take orders (at least on exchange-traded products) so trades will be done until re-confirmed by you.

I’m open to taking on your “tasks” (e.g. trying to find the other side of your trade) leaving you free to focus on better uses of your time.

Send me your ideas, and I’ll try to match inquires, stir up interest, or fill in a portion of what you’re looking to do.

I mentioned NYM as the tax bill just passed, there are lots of traders who probably don’t want to be glued to the Case Shiller screens, and the notional value of 100 lots comes out to a good size of $5mm, but in concept, I’m open to any region/expiration.  I would share that between the inquiries I get, and the interest from others bidding and offering contracts, that the HCI, BOS, CHI, NYM and SFR Nov ’18 contracts are the places you’re most likely to find someone else looking to trade.

Feel free to contact me (johnhdolan@homepricefutures.com) if you care to discuss this blog, or any aspect of hedging home price indices.

Thanks,  John

 

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