BrokerTec Futures Exchange Reduces Minimum Tick Size on Five-Year U.S. Treasury Note Contract; Change to Create Tighter Spreads, More Efficient Market.Business Editors JERSEY CITY, N.J.--(BUSINESS WIRE)--Feb. 4, 2003 In a move that will create an even tighter, more liquid and competitive marketplace, 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 fixed income futures exchange, announced today that a decrease in the minimum tick minimum tick The smallest possible price movement of a security or contract. For example, equity options with premiums of 3 points and greater are traded in eighths of a point, while equity options with premiums less than 3 points may be quoted at size on the five-year Treasury note contract will be implemented as of Friday, February 14, 2003. At that time, the minimum tick size will be lowered from 1/2 of 1/32nd of a point (or US$ 15.625 rounded up to the nearest 1 cent per contract) to 1/4 of 1/32nd of a point (or US$ 7.813 rounded to the nearest 1 cent per contract). This reduction comes as BTEX is seeing a growth in open interest and a rise in participation from the institutional trading community. BTEX also recently announced that a total of 2,109,670 contracts were traded in 2002, its first full year of operation. "By lowering the minimum tick size, we will bring a better transaction price to the market and allow for greater participation from our expanding base of end-users, including market makers, e-locals, proprietary traders and institutional end-users," said Hank Mlynarski, President, BrokerTec Futures Exchange. "This, in turn, will create more efficiencies by further improving the quality and depth of our market." About BrokerTec Futures Exchange: BrokerTec Futures Exchange is a designated contract market approved by the CFTC CFTC See: Commodity Futures Trading Commission CFTC See Commodity Futures Trading Commission (CFTC). that offers a low-cost solution for the electronic trading of U.S. fixed income 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. . BTEX, a subsidiary of BrokerTec Global, is owned and supported by a broad cross section of futures industry participants, including global financial institutions and banks, major securities firms, futures commission merchants, as well as a variety of proprietary trading firms and individuals. BTEX 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. For more information, go to www.btecfutures.com (c) 2002 BrokerTec Global LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and its affiliated companies. All rights reserved. BrokerTec is the marketing name for BrokerTec Global, LLC. BrokerTec, the related marks and phrases are trademarks, service marks and logos of BrokerTec Global, LLC in the United States and other countries throughout the world. |
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