On July 24, CME will launch new synthetic futures for calendar spread options, like for example jul -dec soybean calendar spread options. What are these ? I am missing something...What is the point of having synthetic futures? The underlying calendar spread market already exists...I understand the need for calendar spread options because you can't reproduce a calendar spread option with a combo of options on both legs but I don't understand the need for synthetic futures here. Thoughts?
If it serves no economic purpose, it will fail, as do 90% (?) of newly-launched exchange products. Check back in a year.
3rd in product changes: http://www.cmegroup.com/tools-information/lookups/advisories/electronic-trading/20110704.html#CSO