BrokerTec Futures Exchange Reduces Customer Margin Requirements by Adopting Inter-Market Spread Credits.Business Editors JERSEY CITY--(BUSINESS WIRE)--Sept. 25, 2002 BrokerTec Futures Exchange Futures Exchange Traditionally, a term referring to a central marketplace where futures contracts and options on futures contracts are traded. More recently, with the growth in electronic trading, it is also used to describe the activity of futures trading itself. (BTEX BTEX Benzene, Toluene, Ethylbenzene, and Xylenes (volatile organic compounds) ), the nation's only fully-electronic financial futures financial futures Obligations to buy or sell particular positions in financial instruments. The features of financial futures are identical to those of any futures contract except that the asset for delivery is of a financial nature. exchange, has introduced "inter-market spread credits" for members and users of U.S. Treasury futures products. With the introduction of inter-market spread credits, both members and non-members will enjoy a reduction in their BTEX margin requirements for offsetting, or spread positions in U.S. Treasury futures contracts traded on the Chicago Board of Trade Chicago Board of Trade (CBOT) The second largest futures exchange in the US, and a pioneer in the development of financial futures and options. (CBOT See Chicago Board of Trade. CBOT See Chicago Board of Trade (CBOT). ). This modification of BTEX margin requirements will lower the cost of trading financial futures for the mutual customers of BTEX and the CBOT and allow them to make more efficient use of their capital. These spread savings will reduce current BTEX margin requirements from 40% to 80%. "This reduction in margin requirements is consistent with the futures industry movement toward a portfolio approach to margining. It also supports the BTEX strategy of providing its customers with the most efficient and cost-effective venue for trading" said Hank Mlynarski, President of BrokerTec Futures Exchange. "This month has seen increased usage of our markets, in particular by institutional end user participants. The adoption of inter-market spread credits will allow us to further build on this positive development," Mr. Mlynarski added. Inter-market spread credits are now available for the 5-year, 10-year and 30-year U.S. Treasury futures contracts traded on BTEX against the similar contracts traded on the CBOT. Additional inter-market spread credits may be added in the future. BTEX implementation is scheduled for October 1st. In order to further benefit their mutual members and customers, BTEX has requested that the CBOT also amend its margin rules to recognize contracts traded on BTEX for establishing reciprocal inter-market spread credits. About BrokerTec Futures Exchange BrokerTec Futures Exchange (BTEX) is a designated contract market approved by the CFTC CFTC See: Commodity Futures Trading Commission CFTC See Commodity Futures Trading Commission (CFTC). in June 2001. BTEX offers a low-cost solution for the electronic trading of U.S. fixed income financial futures. BTEX's open membership includes global financial institutions, futures commission merchants, local trading firms and individuals. The Exchange commenced trading in U.S. Treasury securities U.S. Treasury securities Interest-bearing obligations if the U.S. government issued by the U.S. Department of the Treasury as a means of borrowing money to meet government expenditures not covered by tax revenues. futures contracts on November 30, 2001. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion