CME Announces Latest Expansion of Equity Index Product Line

Discussion in 'Index Futures' started by freehouse, May 5, 2005.

  1. Those 20% margins seem lame. I have perhaps a silly question. I see that the intra-commodity spread margin rate is only 5%. Is that spread controlled to correlated assets. For example could I find a commodity which doesn't move at all, pair it with an index future, and get away with putting up less margin. I know that sounds strange but any input on creative uses of the intra-commodity spread rates would be appreciated.
    #31     Jun 6, 2005
  2. ig0r


    What commodity doesn't move at all? Unless you consider illiquid contracts which you can't trade in and out of anyways without giving up a load of edge.

    To answer your question, I have always seen brokers calculate spread margin individually for each and every pair, I have no idea why this is so vague - one could safely assume that the 5% only applies to spreads between these new products.

    #32     Jun 6, 2005
  3. I have to correct myself here. I believe what they meant by spread is not the typical pairing we picture. Aren't those margins specifically for trading different dated contracts, i.e. long this months contract, short the next, hence the "intra-commodity" aspect. Sorry, what was I thinking?
    #33     Jun 7, 2005
  4. ig0r


    Yes, sorry, I misread it as well. What we have been referring to is inter-commodity spreading :)

    #34     Jun 7, 2005

  5. true, i was hoping for some better leverage as well.
    #35     Jun 13, 2005
  6. vetten


    yes the ETF futures minimum margin is at least 20%.

    this is according to the rules, the ETF future being a security future.
    #37     Jul 6, 2005
  7. where can i trade this instrument?
    #38     Nov 18, 2008
  8. MGJ


    #39     Nov 18, 2008
  9. It's not all that big of a contract and it should work out well. I spoke with some people from ICE at the FIA show and this product is encouraging. I suspect a nice spread market (with a ratio or course) will evolve out of this between the CME fx contracts and the spot market
    #40     Nov 18, 2008