New for traders: CME makes revisions Rule 807 (Live cattle futures)

New for Traders

Revisions to CME Rule 807: Live Cattle futures

Effective on Jan. 2, 2015, the Chicago Mercantile Exchange will adopt revisions to Rule 807 (Open Long Positions During Delivery Month) that will eliminate the current prohibition on the intraday freshening of delivery dates in Live Cattle futures. CME currently prohibits freshening by requiring that, beginning on the day following the first day on which long position holders may be assigned delivery, all purchases and sales made on a single trade date by a person holding a long position in spot month Cattle futures must first be netted out as day trades with only excess buys considered new longs, or the excess sales being offsets of the long position.  Given that the effective date of the revisions is Jan. 2, 2015, freshening in CME Live Cattle futures remains prohibited through the expiration of the December 2014 contract month.


  • Modification to daily settlement price determinations in certain CME agricultural futures

Effective on trade date Monday, Dec. 15, 2014, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. (CME or Exchange) will modify the manner in which settlement prices are determined in CME Live Cattle futures, CME Feeder Cattle futures and CME Lean Hogs futures in an effort to incorporate all relevant bid, offer and trade prices in the calculation of the daily settlement price.

  • WEX launches new vega trading applet

Wolverine Execution Services (WEX), a leading provider of premier technology and execution services, today announced the launch of WEX Vega Trader, a new trading applet that allows users to specify a target amount of vega to execute across a range of option expirations and strikes. Only available on the WEX Trading Platform (WTP), Vega Trader helps traders manage risk by allowing them to efficiently take volatility positions.

  • CBOT announces launch of Treasury invoice swaps

Effective Sunday, Dec. 14, 2014, for first trade date of Monday, Dec. 15, 2014, the Board of Trade of the City of Chicago, Inc. (CBOT or Exchange) shall launch the following new interest rate swap (IRS) products –

  • Two-Year Treasury Invoice Swaps (Clearing Codes T1A, T2A, T3A),
  • Five-Year Treasury Invoice Swaps (Clearing Codes F1A, F2A, F3A),
  • Ten-Year Treasury Invoice Swaps (Clearing Codes N1A, N2A, N3A),
  • Treasury Bond Invoice Swaps (Clearing Codes B1A, B2A, B3A), and
  • Long-Term Treasury Bond Invoice Swaps (Clearing Codes U1A, U2A, U3A)

CBOT Treasury invoice swaps shall be listed for trading on the CME Globex electronic trading platform (CME Globex) solely in the form of intermarket spreads known as invoice spreads. An invoice spread transaction characteristically entails the simultaneous execution of a Treasury invoice swap and the corresponding relevant CBOT Treasury futures contract. Such invoice spreads shall be listed for trading on CME Globex (Sun-Fri, 5pm to 4pm, Chicago time) and shall be identified by the Clearing Codes cited above. Additionally, market participants may notify the Exchange of block transactions in such invoice spreads via CME ClearPort (Sun-Fri, 5pm to 4:15pm, Chicago time).

  • CBOE launches enhanced website

The Chicago Board Options Exchange (CBOE) today announced it has released its newly enhanced website, featuring easier navigation and search capabilities, updated and revised educational content, and a responsive design that optimizes desktop, mobile phone and tablet viewing.

Key features of the new include:

  • Enhanced design: Streamlined design helps users easily locate trading information and educational resources.
  • Mobile-optimization: Web pages easily resize to conform to any format – desktop, smart phone and tablet – for an optimal mobile experience.
  • Improved, expanded navigation: Enriched drop-down navigation enables users to view content by section as well as through related links across the entire site. Improved navigation simplifies the ability to return to previously-viewed pages or sections.
  • Intuitive search function: An enhanced search function allows users to quickly find and narrow relevant content for their search criteria.
  • Featured product section: New and updated product content includes current and historical data, contract specifications and trading strategies, and newly-expanded resources for CBOE's volatility products.
  • CBOE news: Featured news section offers continuously updated trading, market and company news, blogs and videos.
  • Updated education and strategy content: Expanded and updated education and strategy tools provide more extensive trading resources. Users can tailor their learning path according to individual skill levels or by product.

In addition to the release of its enhanced website, in October CBOE released its new application for iPhone and iPad users. "CBOE Mobile" features a variety of basic to advanced interactive educational courses, as well as expanded trading tools, market data and accessibility to CBOE's social media channels and streaming video from CBOE TV

  • Leading investment firms join RCM Alternatives for panel discussion on managed futures in Miami

RCM Alternatives, a specialized financial services firm, is offering investors and wealth managers the opportunity to learn more about the benefits of managed futures during a panel discussion and Q&A with niche managers and best-in-class service providers.

The event will take place at the Eden Roc Hotel, 4525 Collins Avenue in Miami, Fla., on December 10, 2014 at 4:30 p.m. RCM Alternatives is a Certified Financial Planner (CFP) Board-Registered CE Sponsor. Attendees of the event will earn two hours of Continuing Education Credits and attendance is open to all accredited investors and registered investment advisors.

The panelists will discuss:

  • The benefits and risks associated with investing in managed futures
  • Issues around investor access, portfolio construction and performance monitoring/vetting
  • How managed futures and niche managers can capture alpha
  • The importance of diversification and understanding correlation in today’s markets

One day prior, commodity trading advisors (CTAs) will have a unique opportunity to meet with RCM Alternatives during a 30-minute Q&A at 10:30 a.m. inside Fontainebleau Miami Beach Hotel during the Emerging Managers Forum held by CTA Expo, LLC.

  • Introducing bitcoin binary options

The North American Derivatives Exchange (Nadex), a regulated online binary options exchange, announced it plans to launch bitcoin binary options contracts in early December, subject to filing with the Commodity Futures Trading Commission. Nadex will list the daily and weekly bitcoin binary options contracts with prices based on TeraExchange’s Tera Bitcoin Price Index (“TeraBit Indexsm”), the global benchmark for USD/XBT contracts.

Nadex has seen strong consumer demand from retail traders looking for new ways to trade bitcoin. Similar to other binary options contracts on Nadex, investors can trade based on where they think the bitcoin binary contract is heading using daily or weekly contracts. A binary contract is one in which the payoff can take only two possible outcomes: a fixed amount or nothing at all.

  • Virtu Financial Joins Eris Exchange as a Liquidity Provider

Eris Exchange (Eris), a US-based futures exchange offering capital-efficient Swap Futures, announced that leading global electronic market maker, Virtu Financial (Virtu), is streaming liquidity into Eris SwapBookTM and will be offering two-way voice markets for off-exchange trades for Eris Swap Futures.

Virtu is a leading electronic market maker and liquidity provider across numerous exchanges and electronic marketplaces around the globe. From its offices in New York, Los Angeles, London, Dublin, Sydney and Singapore, Virtu is active in market making in equities, fixed income, currencies, options, energy products, metals and other commodities across all major financial centers.  Since 2002, Virtu's business has grown to comprise significant market share in numerous asset classes around the world, playing a vital role in contributing to the healthy and efficient functioning of global financial markets.

  • TradingScreen launches trading access to Eris Exchange

TradingScreen, the leading independent provider of liquidity, trading, and investment technology via SaaS, today announced the addition of Eris Exchange as a destination. Buy-side trading participants can now access margin efficient Eris Swap Futures traded on Eris SwapBookTM through TradingScreen’s suite of offerings: TradeSmart an award winning EMS, TradeExchange a SaaS Exchange Links offering, and TradeFast® a high speed API through TradeNet, a global network of brokers, liquidity providers and exchanges.

TradingScreen’s broker-neutral approach allows buy-side clients to route orders directly, either through broker FIX infrastructures of their choice or by selecting the “sponsored access” model for electronic execution of Eris Standards Swap Futures. Buy-side clients who prefer the flexibility and choice offered by non-conflicted providers will find this offering a cornerstone of their “best execution” strategy. TradingScreen is the first broker-independent EMS offering Eris products in the market.

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