CBOT German contracts

Discussion in 'Financial Futures' started by LRD, Apr 7, 2004.

  1. LRD


    Does anyone have any views on the CBOT Bund, Bobl and Schatz launch? Any possibility that they'll attract volume? What's the purpose of the launch?
  2. josbarr


    They will be cash settled.
  3. CHICAGO, IL April 6, 2004 — The Chicago Board of Trade (CBOT) announced today that it will launch Bund, Bobl and Schatz futures on April 23, 2004, with seven firms serving as market makers within the CBOT German debt complex.

    The cash settlement process for the CBOT’s German debt futures contracts is a procedure that provides more efficient convergence between the futures and underlying cash market at expiration than any other futures product on German debt. Settlement at expiration will be based on activity in the contracts’ underlying cash markets, rather than price activity in futures. This new procedure puts the prices of CBOT German futures contracts more in line with the cash market at expiration.

    Traders of CBOT Bund, Bobl and Schatz futures will now have the ability to trade German debt contracts on a superior electronic trading platform that features tremendous speed, functionality and reliability. Cross margining will be available to CBOT customers who trade both the exchange’s German debt complex and CBOT U.S. Treasury products, the most liquid U.S. Treasury futures and options market in the world.

    CBOT President and CEO Bernard W. Dan said, “I believe that the unique characteristics of CBOT Bund, Bobl and Schatz futures will fill a void in the marketplace and will appeal to a wide range of market users, particularly those who are interested in the most efficient settlement process available at expiration. Further, the CBOT has a proven track record of effective market surveillance and unwavering commitment to transparency and to market integrity, which are unsurpassed by any marketplace.”

    In response to customer requests, the CBOT will offer German debt futures with a tick size of one basis point, which is equal to 10 euros.

    CBOT Bund, Bobl and Schatz futures will trade from 8 a.m. to 9:15 p.m. Central European Time (1 a.m. to 2:15 p.m. Chicago time), Monday through Friday. Trading on April 23 will begin at 8 a.m. Central European Time.
  4. Xenia