|
PureBytes Links
Trading Reference Links
|
RT's
FYI
Kim Havmann
E-Mail: Havmann@xxxxxxxxxx
CFTC approves 2-for-1 split of CME S&P 500 contracts
Chicago-Sep 25--The Commodity Futures Trading Commission has approved an amendment proposed by the Chicago Mercantile Exchange to reduce the contract multiplier on its S&P 500 futures contract to $250 from $500. Other changes approved by the CFTC: raising the minimum pricing increment for outright S&P 500 futures and options to 0.10 index point from 0.05 and raising position limits to 20,000 contracts from 10,000.
* * *
After the close of business Oct 31, open S&P 500 stock index contracts will be split 2-for-1, and every futures contract position will be converted to 2 futures of the same expiration, the CME said. Every call options contract will be converted to 2 call options on futures of the same expiration and strike price.
These amendments will be applicable to positions established after Globex trading opens Nov 2. Such positions will be fully fungible with positions created by the contract split.
Each S&P 500 futures option will become one S&P 500 futures contract upon exercise, effectively reducing the size of the options in parallel with the futures, the CME said.
The minimum pricing increment for calendar spreads in S&P 500 futures will remain at 0.05, it said.
Changes to the CME's S&P 500 BARRA Growth and Value contracts needed
to
keep the terms of these contracts consistent with those of the S&P 500
still are pending CFTC approval. End
|