Cantor Exchange Introduces Limit Orders

The Cantor Exchange (CX) announced on June 15 that it has begun accepting limit orders for all U.S. Treasury futures contracts traded on CX: 30 year bond, 10 year note, 5 year note and 2 year note. CX had previously received approval from the Commodity Futures Trading Commission (CFTC) to implement limit orders in the CX system. "Limit orders, or 'Session Orders' as they are referred to in the CX rules, will improve access to CX for all traders who can now leave resting orders in the marketplace," stated Joseph J. O'Neill, President of the Cantor Exchange. In addition, a number of updates to the CX trading system are designed to increase market efficiency and user protection. "Among its enhancements to the CX order system," added Mr. O'Neill, "limit orders give CX customers placing the order, whether through a Terminal Operator or by Direct Access, the same rights as any other passive market participant." Direct access is available to FCMs and their customers via CX supplied stand alone terminals or by incorporating CX access into FCM front-end software using the CX API or certified vendor software. Current certified front-end software vendors include Q.V. Trading Systems, Inc. and SunGard Data Systems. A limit order will also be the First Best bid or offer on CX whenever it becomes the best available bid or offer (or, if there are multiple bids or offers at the same price, if it was the first to be entered into the Cantor System). A trade will occur when the limit order is hit or lifted by a person acting as an aggressor placing a market order. All the proprietary CX E-Speed limit order screens will show the current bid and offer prices plus the next five best bids and offers. Mr. O'Neill noted that a limit order is good only for the trading session in which it is entered. "By designating an offer as a limit order," he said, "an Authorized Trader or Associate Member can ensure that such an order will remain in the Cantor System" until the end of the relevant trading day (usually 3:00:00 PM EST); or, the end of business hours (usually 5:30 PM EST) on the relevant calendar day. Limit orders can be withdrawn at any time during the trading session at the discretion of the trader. The Cantor Exchange is owned by the New York Board of Trade (NYBOT) and its members. NYBOT is responsible for self-regulatory oversight and clearing of all trades executed on CX. Cantor Fitzgerald operates the trading platform for CX, utilizing the trading and distribution systems that have been perfected in Cantor Fitzgerald's highly liquid U.S. Treasury cash market.