Directed Fungibility for CBOT Metals A directed fungibility program will be implemented on September 1, 2006 for CBOT metal contracts. This program will enable market participants holding opposite positions in mini-sized and full-sized metals futures contracts in the proper ratio and the same contract month, contract year, and account to request, through their clearing firm, the offset of those positions. Firms will have the ability to enter a Request for Offset (âRFOâ) against mini-sized and full-sized futures metals contracts through Front End Clearing (âFECâ). If accepted, the positions being offset shall be transferred to a holding account at the CBOT Clearing Services Provider. The CBOT Clearing Services Provider shall accept such request or fraction of such request upon receiving an opposite offset request from another clearing member. Such requests shall be processed in the order of oldest request date. No such offset request for the expiring contract month shall be accepted during the last two trading days and all pending requests for that contract month will be cancelled at this time. The offset process for metals is as follows: Ratios are 5,000 oz Silver to Mini-sized Silver: Ratio 1:5; 100 oz Gold to Mini-sized Gold: Ratio 1:3 Firm enters request for offset in existing fungible entry screen (firm enters either large contract or mini contract and the system creates the opposing contract). Offset prices are populated with the previous dayâs settlement price as of the date of match. A firm can, at any point, adjust down or delete an offset request. Increasing the quantity of the RFO requires a new request and must be added separately. At 5:00 p.m. each business day the system will be closed to new entries and updates. Shortly after 5:00 p.m. a match will run and if there are requests which can be matched, trade confirmations will be sent to the firms detailing quantity and price of the offsets. Upon receipt of confirmation, firms must go into the delivery system and adjust inventories if offsets are occurring during the delivery month and ensure that PCS reporting for offsets is accurately reflected. Requests that are matched are booked and cleared with the trade date of the match event regardless of date the request was entered into the system. Partial matching is a possibility. When this occurs requests are automatically reduced by the quantity of the match and the requests retain their original date and timestamp. Fungible offset request will remain in FEC until they are matched, removed by the firm, or 2 days prior to the last day of trading for the contract, at which time all outstanding requests will be deleted from the system. Outstanding offset requests will be published, in aggregate, daily on CBOT.com. Specifically, this information can be found in the Registrar Report Section. Questions related to this Notice can be directed to Joe Hawrysz at 312.341.7750 or jhawrysz@cbot.com for those who don't get the emails
its a good idea ... but I think it only makes sense during rollover periods .... I would think the market makers would not like it if anyone at anytime could offset ... minis against full size also ... if allowed at all times this could reduce volume in the CBOT metals ...
Maybe its just me, but if this isnt the most significant and volatile pattern to be seen in gold for some time, then i would be incorrect. What, a week and a half of flat eod, this is serious folks, a break is in order-i just cant see significant downside (except to wash out some weak longs, gotta happen and more likely rolling to december-LONG side) I just dont see weak shorts staying here, sitting right on some important fib retracements on at least two time frames, NO WAY. This is perfect strangle territory, but i hate options strategies with passion. If you missed my point, a week and a half of FLAT price action in your favourite metals, silva and GOLD.
I could be totally wrong about this but silver futures strength to me is all SLV ( ETF ) related today oops ... well maybe the rollover to DEC this week too is lending support to futures
ack i tried to buy silver last night at 2 am. sept yi and it said i couldnt - consult ib website because it was against the rules because it is a deliverable???? any ideas wtf this means? i already own some yi... is it because it was after business hours? i couldnt find it on i/b website... anyway... hope it pulls back a bit.....%^&&*
it's cause you're trying to buy sept. which is pre front month(dec) so it's getting to be delivery season, which is not allowed with IB
The first position date on YI September futures is August 30. So, you cannot go long now. You do not want a truckload of silver on your backyard, right? You still can go short or close your positions. You can also trade any side with further months. Reference: http://www.interactivebrokers.com/e...calDeliveryLiquidationRules.php?ib_entity=llc
dear mr niceandeasy SILVER just rolled over to DEC 2006 futures I suggest you do the same if you intend to keep your position or establish a new one at some point in the near future
looks like SLV drove silver lower today or maybe the gold - silver ratio got too narrow and somebody started to unwind some or it was just me going long SLV and having to kick it out at a loss funny ... but many times the spread on SLV is alot tighter than silver futures