Roll Dates for Currencies and Financial Futures

Discussion in 'Index Futures' started by PXG, Feb 14, 2003.

  1. PXG

    PXG

    I trade stocks, NQ, ES, but am looking at other possibilities in trading futures.
    I was wondering if anyone knows the "roll date rules" for currency futures and financial futures (US, TY, FV)
    So far, based on volume analysis, and some info from CME website, I concluded that the roll-overs for currency futures occur on 2 business days before second Wednesday (which are usually Mondays if there is no holiday) or you can say exactly 1 week before expiration. I concluded this so far examining JY, didn't yet Is my assumption on currency futures (or at least JY) right?
    As far as financial futures (US, TY, FV) go, I can't find any logic/rule based on volume analysis. Can anyone help?
    Thanks in advance.
     
  2. Last trading day for es, nq, etc. is the third friday of the expiration month. Rollover day is the Thursday 1 week and 1 day before the last trading day.
     
  3. And how about currency futures and financial futures ?
    No floor traders here ?
     
  4. josbarr

    josbarr

    Currencies Roll March 10 One week before exp.

    CBOT Financials rollover Feb 27 One day before first notice day.
     
  5. PXG

    PXG

    Thanks a lot to everybody who responded, especially Josbarr.

    One more thing, how do I determine historical first notice days? Looking at the CBOT calendar, they only have dates available starting from 2002. From those dates I concluded that the first notice day is the last business day in the month preceding the expiration month. Am I correct?

    For those who would like to know how to determine expiration dates on currency futures, here is info from CME website:
    "If the business day is a holiday, the contract will expire on the business
    day preceding the holiday. Quarterly currencies expire the second business
    day preceding the third Wednesday of the contract month."
     
  6. PXG

    PXG

    I just realized that IB requires to close the Financials futures position 3 business days prior to the first notice day. This is 2 days earlier than the rollover at pit occurs.
    Does anybody have an experience with this at IB?
    Do they really liquidate your position 3 days before the first notice day?

    From IB's website:
    "For such futures contracts not settled in cash, Customers agree to roll forward or close-out any position by offset three (3) business days prior to the exchange-specified last trading date for the contract or three business days prior to the first notice day, whichever comes first (the "Close-Out Deadline"). "

    Thanks!
     
  7. bone

    bone

    Simply go to the website for the particular exchange/commodity in question to get the particulars on contract rolls.

    IB and other brokers are right to restrict contracts during rollover - delivery and offset on fungible contracts past first notice day is a pain in the A**, and they do not want to get involved in that bizzbag.

    Unless you have market-making capabilities and direct exchange access, I would caution against trading fungible contracts so close to first-notice day. The squeezes can get really nasty.
     
  8. PXG

    PXG

    Thanks a lot, Bone, for your response and all the info.
    Then I will be rolling over 3 days prior to the first notice day when I start trading the financial futures. The volume and spread seem to be ok even 3 days prior to the first notice day.
     
  9. Seven

    Seven

    Just for clarification because I had to go look it up.

    CBOT doesn't specifically state a FND in their contract spec.'s so though there may be one IB doesn't recognize it.

    Specifically, zn h3 - Mar T-Notes: IB's LTD is Mar 20 NOT Feb. 24. This is according to the guy I talked to at IB.

    Also there is no ace volume 3 days before FND at least during this rollover.
     
  10. PXG

    PXG

    Darren,
    thanks for your post. I am not sure if I understand you correctly though.
    Yes, CBOT doesn't state the FND in their contract spec.'s, but they have a Notice Calendar
    http://www.cbot.com/cbot/docs/32515.doc
    So you are saying IB doesn't recognize the FND for CBOT financial futures, and the latest I would have to offset my position is 3 days prior to the last trading day, which is defined in the contract spec.'s?
    Thanks for your response, I am going to ask IB, too.
     
    #10     Feb 26, 2003