CBOE China Index futures are exchange-traded contracts based on an equal-dollar weighted index composed of sixteen American Depository Receipts, New York Registered Shares or NYSE Global Shares®, which are traded on the New York Stock Exchange, Nasdaq, or the American Stock Exchange. The sixteen companies that comprise the new index are: Aluminum Corp. of China Ltd. (ACH), China Life Insurance Co. Ltd. (LFC), China Telecom Corp. Ltd. (CHA), Chinadotcom Corp. (CHINA), China Mobile (Hong Kong) Ltd. (CHL), China Unicom Ltd. (CHU), CNOOC Ltd. (CEO), China Yuchai International Ltd. (CYD), Huaneng Power International Inc. (HNP), Nam Tai Electronics, Inc. (NTE), Netease.com, Inc. (NTES), PetroChina Co. Ltd. (PTR), Sina Corporation (SINA), China Petroleum & Chemical Corp. (SNP), Sohu.com Inc. (SOHU), and UTStarcom Inc. (UTSI).
LaBranche Structured Products, LLC, a subsidiary of LaBranche & Co Inc., the largest specialist firm on the NYSE, has been named the Designated Primary Market Maker (DPM) for CBOE China Index futures. This is the first DPM appointment for LaBranche at CFE or CBOE.
"In keeping with CFE's commitment to offer investors dynamic, innovative risk management tools, such as our futures on volatility and variance, we are proud to introduce futures on the CBOE China Index," said Patrick Fay, Managing Director, CBOE Futures Exchange. "Additionally, we are pleased to welcome LaBranche Structured Products to our exchange as the Designated Primary Market Maker for the CBOE China Index. Their proven experience in making markets will greatly benefit, not only this new product and exchange, but all investors."
Futures on the CBOE China Index is the third product to be listed on CFE, joining futures on the CBOE Volatility Index, VIX, and the CBOE S&P 500 Three-Month Variance futures. VIX futures (ticker symbol VX) are based on the CBOE Volatility Index, which was first introduced in 1993 and quickly became the benchmark index of market sentiment. Derived from real-time S&P 500 Index option prices, VIX is designed to reflect investors' consensus view of expected stock market volatility over the next 30 days. The CBOE S&P 500 Three-Month Variance futures (ticker symbol VT) is an exchange-traded futures contract based on the realized variance of the S&P 500 Stock Index over a three-month period.
CBOE China Index Futures Contract Specifications:
- Ticker symbol: CX
- Trading hours: 8:30 a.m. to 3:15 p.m. CT (Chicago Time).
- Trading platform: electronic trading via CBOEdirect.
- Price quotation: quoted in terms of the underlying CBOE China Index. -
- Contract size: contract multiplier is $100 per point. For example, at an Index level of 300.50, the CBOE China Index futures contract would have a value of $30,050.00.
- Contract months: up to three near-term contract months and three months in the March quarterly cycle.
- Minimum price intervals: $0.05 ($5.00 per contract). Stated in decimals.
- Termination of trading: will ordinarily cease on the business day (usually a Thursday) preceding the day on which the final settlement value is calculated.
- Final settlement date: the third Friday of the expiring month.
- Final settlement price: the final settlement price for CX futures will be a Special Opening Quotation (SOQ) calculated using the first (opening) reported sales price in the primary market of each component security of the index on the settlement date.
- Delivery: cash settled on the business day immediately following the settlement date.
The newly formed CFE is a wholly-owned subsidiary of Chicago Board Options Exchange, Incorporated, offering an all-electronic, open access market model, with traders providing liquidity and making markets. CFE trades are cleared by the triple-A rated Options Clearing Corporation (OCC). The newest futures exchange in the world, the CBOE Futures Exchange is regulated by the Commodity Futures Trading Commission (CFTC). More information on CFE and its products, including contract specifications, can be found at: http://www.cboe.com/CFE.
