CME Group launches long-term US Treasury bond futures.Byline: news@cpifinancial.net (Staff Writer) This contract will be listed with, and subject to, the rules and regulations of the CBOT See Chicago Board of Trade. CBOT See Chicago Board of Trade (CBOT). . "The Long-Term Treasury Bond futures are being launched in response to strong customer demand for a contract that mimics the duration of a 30-year Treasury bond," said Robin Ross, CME CME See: Chicago Mercantile Exchange CME See Chicago Mercantile Exchange (CME). Group Managing Director of Interest Rate Products. "The Ultra Bond contract will complement our existing benchmark U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. complex and expand the range of risk management and trading opportunities for market participants." Deliverable securities for the new Long-Term Bond future will comprise cash Treasury bonds with at least 25 years of remaining term to maturity. By comparison, deliverable securities for the existing Treasury Bond contract are bonds with remaining terms to maturity of 15 years or more. The recent fiscal policy shift toward greater issuance of long-term bonds has enabled CME Group to launch this contract targeted at this important part of the yield curve. In all other respects, the specifications for the Ultra Bond futures closely resemble those for the existing Treasury Bond contract. They are identical in terms of their notional value Notional Value The total value of a leveraged position's assets. This term is commonly used in the options, futures and currency markets because in them a very little amount of invested money can control a large position (have a large consequence for the trader). , 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, contract critical dates, and coupon. Initially, the Exchange will list three March-quarterly delivery months in the Ultra Bond futures, beginning with the March 2010 expiry. There will be no modifications to the currently listed Treasury Bond futures contract Futures Contract An exchange traded agreement to buy or sell a particular type and grade of commodity for delivery at an agreed upon place and time in the future. Futures contracts are transferable between parties. specifications. 2009 CPI Financial. All rights reserved. Provided by Syndigate.info an Albawaba.com company |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion