The CME provides "Last Day" futures on the energies. Can anyone provide an explanation of what they are, and how they differ from the standard contracts? Here is a description of the one for Crude Oil: http://www.cmegroup.com/trading/ene...st-day-financial_contract_specifications.html
Seems no any trading volume yet: http://www.cmegroup.com/trading/energy/crude-oil/crude-oil-last-day-financial_quotes_volume_voi.html Found also another financially settled one: "Crude Oil Financial Futures" Already showed some trading volume data: http://www.cmegroup.com/trading/ene...eet-crude-cash-settled_quotes_volume_voi.html Seems better, as potentially with options!
Also found: " DEFINITION of 'Last Trading Day' The final day that a futures contract may trade or be closed out before delivery of the underlying asset or cash settlement must occur. By the end of the last trading day, the contract holder must be prepared to accept delivery of the commodity, or settle in cash if the position is not closed. " http://www.investopedia.com/terms/l/lasttradingday.asp Separately: http://www.livecharts.co.uk/articles/oil-futures-details.php " Known as Last Day Financial futures, Brent crude oil futures operate quite differently than normal crude oil prices. The futures contracts are essentially an outright crude oil contract between the seller and the buyer. "
I found that definition, too. I guess I need a horsey-ducky translation ... what is the purpose of these contracts?
http://www.cmegroup.com/trading-hours.html#energy From the above page if looks like only energy products have (so many) different settlements (physical; financial; cash; etc.) for various futures. Perhaps some commercial traders could provide us better info/details.
I can see from books there are so many exotic options structures for both energy and currency groups. Just let us know an approximate number of the most commonly used ones for each group would be fine. Are they mostly OTC contracts? Are they closely related to the CME new futures products? I'm afraid not.