The Chicago Board of Trade (CBOT) announced today that on Wednesday, October 6, 2004, the exchange will launch full-sized Gold and Silver futures contracts, which will be traded exclusively on the CBOT's premier electronic trading platform and will be available 21 hours per day.
CBOT President and CEO Bernard W. Dan said, "The CBOT's new electronically traded full-sized Gold and Silver futures contracts, created in response to requests from our customers, are designed to revolutionize trading in these products. Market users will be able to access CBOT full-sized metals contracts nearly around-the-clock in an open, transparent environment. Further, the speed and functionality offered by the CBOT's superior electronic trading platform will provide metals market users worldwide with even greater trading opportunities than currently exist today. By offering both full- and mini-sized metals contracts, our customers --whether retail, institutional or commercial--can find the most appropriate products for their trading needs in one marketplace."
CBOT full-sized Gold futures (100 ounce), and CBOT full-sized Silver futures (5,000 ounce), will complement the exchange's existing mini-sized metals contracts. CBOT mini-sized Gold futures (33.2 ounce), and CBOT mini-sized Silver futures (1,000 ounce), also trade exclusively on the exchange's electronic trading platform. Volume in CBOT mini-sized Gold and Silver contracts has seen significant growth.Year-to-date through July, CBOT mini-sized precious metals futures volume increased 439 percent from the same period last year. The CBOT has traded metal futures since 1968.
The CBOT will implement an Electronic Market Maker (EMM) program to provide liquidity in the exchange's full-sized precious metals products at launch. Up to five market makers will compete with each other under the EMM program, designed to provide tight bid-offer spreads in CBOT full-sized Gold and Silver futures and to create efficient, deep markets for all customers. Additionally, the CBOT metals complex potentially provides spread trading opportunities with other metals, interest rate and currency-related products.
Through the CBOT Website, customers will have access, free of charge, to the live metals market book, which includes bids, offers and quantities in both the full and mini-sized metals futures contracts.
Trading hours for the CBOT precious metals contracts will run from 7:16 p.m. Central Standard Time to 4:00 p.m. CST the following day, Sunday through Friday.