CBOT to Launch New Electronic Dow Contract
Chicago, March 21, 2002 - Continuing to expand creation of new products and trading opportunities, the Chicago Board of Trade (CBOT®) today announced the newest addition to its DowSMJonesSM Complex, a CBOT® mini-sized DowSM contract with a $5 multiplier, to be launched on April 5, 2002 (trading begins 8:15 p.m. on 4/4/02). To enhance liquidity, the CBOT® plans to use two electronic market markers for the CBOT® mini-sized DowSMfutures contracts on its electronic trading platform.
The new CBOT® mini-sized DowSM($5) contract is one-half the size of the original CBOT® DowSMJones Industrial Average (DJIASM) futures contract. The value of a CBOT® mini-sized DowSMcontract is its multiplier times the DJIASM index level.
CBOT® Chairman Nickolas J. Neubauer said, “The CBOT® received strong encouragement from customers to launch a new mini-sized contract and we are responding. The introduction of the CBOT® mini-sized DowSMcontract with a $5 multiplier complements our existing DowSMEquity and CBOT® Index complexes. This unique synergy, combined with the trading expertise and liquidity provided by our DowSMtraders, ensures the best fit for open auction and screen arbitrage opportunities for our members and retail customers.
“In addition to electronic market makers, a new CBOT® arbitrage program, with multiple firms participating, is now in place to promote an environment conducive to arbitrage and spreading between the open auction contracts and electronic mini-sized contracts.”
CBOT® DJIASM and mini-sized DowSMfutures contracts based on the DowSMJones Industrial Average -- the world's most readily recognized and followed stock index -- provide large and small investors a way to profit by taking a position based on the performance of the DJIASM, to diversify and protect their portfolios against adverse price changes in the stock market, and to preserve investment value.
On April 5, the CBOT® will cancel side-by-side trading for its DJIASM futures and futures-option contracts. The new trading hours for the CBOT® DowSMJones complex are as follows:
DJIASM futures & futures options - open outcry: 7:20 a.m. -3:15p.m.; electronic: 8:15 p.m. - 7:00 a.m.; CBOT® mini-sized DowSM($2) and ($5) contracts - electronic: 8:15 p.m. - 4:00 p.m.
For more information on the DJIASM futures contracts and on the DowSMJones Complex, please visit the CBOT® website at www.cbot.com. |
