New minis - CBOT

Discussion in 'Index Futures' started by EnterLong, Aug 20, 2001.

  1. Hi trader.

    Some interesting news from the cbot

    new a/c/e electronic-minis on:
    U.S. Treasury Bond
    U.S 10year Note
    Dow Industrial Average
    New York Gold
    New York Silver

    Equity interest rate, and metals contracts begin trading on on September 30. Agricultural contracts will begin trading in 4th quarter of 2001.

    Mor information:,1398,14+371,00.html
  2. tntneo

    tntneo Moderator

    this seems interesting.
    more trading opportunities. however, only with liquidity these contracts will become interesting.
  3. course, but are you worry about liquidity in bond, note or €/$ currency?

    IMHO sooner or later everything is going electronically.

  4. tntneo

    tntneo Moderator

    sure you're right EnterLong.
    I was only thinking very short term 'cause actually I am very interested in more electronic markets than now.
    In the long run, there is no doubt whatsoever :)
  5. - CHICAGO, Aug 22 (Reuters) ---

    The Chicago Board of Trade said Wednesday it will launch a mini-sized Dow futures contract on Sept. 30 based on the Dow Jones industrial average, which will trade exclusively on the exchange's a/c/e electronic trading platformA fraction of the size of the CBOT's existing Dow futures contract, the mini Dow is one in a series of new products that the CBOT announced it would offer in late June. Futures industry insiders have said the exchange is targeting retail customers with the new mini products in the hope of boosting volume at the exchange.

    The exchange said it hopes the new products will provide more effective risk management tools for participants, especially those seeking benchmark alternatives to Treasury securities.

    Volume in the CBOT's full-sized Dow contract has trailed that of the Chicago Mercantile Exchange's Standard & Poor's 500 index and Nasdaq 100 index futures contracts, both of which are offered in mini versions at the CME.

    The CBOT's existing Dow contract traded about 320,000 contracts in July, while the CME's S&P contract saw volume of 1.3 million contracts and the Nasdaq traded about 370,000 contracts during the same month.

    About 2.9 million e-mini S&P contracts traded hands at the CME in July, while the e-mini Nasdaq had volume of about 2.5 million last month.

    The trading unit for the CBOT's new mini Dow contract will be $2.00 times the Dow Jones industrial average, which is a price-weighted index of 30 of the largest, most liquid U.S. stocks. The full-sized Dow futures contract trades at $10 times the underlying index.

    The mini Dow's price will be quoted in index points, and one point will be worth $2.00. The tick size will be one point.

    The new CBOT product will trade in March, June, September, and December contract months and will be cash settled. It will have 10 percent, 20 percent, and 30 percent daily price limits and will trade on a/c/e between 8:15 p.m. and 4:00 p.m. CDT (0115 and 2100 GMT).
  6. tymjr


    “The mini Dow's price will be quoted in index points, and one point will be worth $2.00. The tick size will be one point.”

    Small contract. Seems perfect for undercapitalized traders who want to daytrade. Great for new traders, too. Kinda like the Midam was. We’ll see how liquid it becomes.