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This is what I received today.
regards,
Ed Kiers
-----Original Message-----
From: Michaelene Delgado [mailto:mdel50@xxxxxxxx]
Sent: 25 March 2002 13:43
To: Marketing_Press_Release
Subject: CBOT to Launch New Electronic Dow Contract
Chicago, March 21, 2002 - Continuing to expand creation of new products and
trading opportunities, the Chicago Board of Trade (CBOT®) today announced
the newest addition to its Dow Jones(sm) Complex, a CBOT mini-sized Dow
contract with a $5 multiplier, to be launched on April 5, 2002 (trading
begins 8:15 p.m. on 4/4/02). To enhance liquidity, the CBOT plans to use two
electronic market markers for the CBOT mini-sized Dow futures
contracts on its electronic trading platform.
The new CBOT mini-sized Dow ($5) contract is one-half the size of the
original CBOT Dow Jones Industrial Average (DJIA) futures contract. The
value of a CBOT mini-sized Dow contract is its multiplier times the DJIA
index level.
CBOT Chairman Nickolas J. Neubauer said, "The CBOT received strong
encouragement from customers to launch a new mini-sized contract and we are
responding. The introduction of the CBOT mini-sized Dow contract with a $5
multiplier complements our existing Dow Equity and CBOT Index complexes.
This unique synergy, combined with the trading expertise and liquidity
provided by our Dow traders, ensures the best fit for open auction and
screen arbitrage opportunities for our members and retail customers.
"In addition to electronic market makers, a new CBOT arbitrage program, with
multiple firms participating, is now in place to promote an environment
conducive to arbitrage and spreading between the open auction contracts and
electronic mini-sized contracts."
CBOT DJIA and mini-sized Dow futures contracts based on the Dow Jones
Industrial Average -- the world's most readily recognized and followed stock
index -- provide large and small investors a way to profit by taking a
position based on the performance of the DJIA, to diversify and protect
their portfolios against adverse price changes in the stock market, and to
preserve investment value.
On April 5, the CBOT will cancel side-by-side trading for its DJIA futures
and futures-option contracts. The new trading hours for the CBOT Dow Jones
complex are as follows:
DJIA futures & futures options - open outcry: 7:20 a.m. -3:15p.m.;
electronic: 8:15 p.m. - 7:00 a.m.; CBOT mini-sized Dow ($2) and ($5)
contracts - electronic: 8:15 p.m. - 4:00 p.m.
For more information on the DJIA futures contracts and on the Dow Jones
Complex, please visit the CBOT website at www.cbot.com.
******************************
This was brought to you by the Chicago Board of Trade. Visit our website
for other valuable market information at: http://www.cbot.com.
----- Original Message -----
From: "Gary Fritz" <fritz@xxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Tuesday, March 26, 2002 4:54 PM
Subject: Re: New Dow Complex Structure at the CBOT
> [The CME] has plans to offer some form of electronic trading for
> all its contracts by the end of the year. Then we will let the
> market decide which format will win in head to head competition on
> as level a playing field as can be found.
How level will it be, really? Will the electronic SP be emasculated
the same way the ES was at first, or will it be a totally open market?
> I am a firm believer in letting the market decide which is the
> best format.
Me too. But it DOES require a level playing field. The ES got off
to a much slower start than it should have. Once they took off the
size limits, it was off to the races. I hope they're smart enough to
not make that mistake again.
Gary
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