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Futures on the CBOE China Index (futures symbol CX) are standard, cash settled futures contracts based on the newly created CBOE China Index (ticker symbol CYX).
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.
"This is the first U.S.-listed futures contract that provides exposure to the fast growing mainland Chinese market," said Patrick Fay, Managing Director, CBOE Futures Exchange."U.S. investors will now have the opportunity to participate in this market with a US-listed futures contract, supported by continuous liquidity from one of the largest and most experienced market making firms."
The CBOE China Index, created by the CBOE, is a broad-based, equal-dollar weighted index composed of sixteen securities, all of which are either American Depository Receipts (ADRs), New York Registered Shares (NYSs) or NYSE Global Shares (NGSs) traded on the New York Stock Exchange, Nasdaq or the American Stock Exchange. Initially, 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), Nam Tai Electronics, Inc. (NTE), Netease.com, Inc. (NTES), PetroChina Co. Ltd. (PTR), Sina Corporation (SINA), Semiconductor Manufacturing International Corporation (SMI), China Petroleum & Chemical Corp. (SNP), Sohu.com Inc. (SOHU), and UTStarcom Inc. (UTSI).The index will be rebalanced quarterly.
Options on the CBOE China Index (options symbol CYX) are expected to be listed on the Chicago Board Options Exchange (CBOE), in the near future.
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).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 (VT).The CBOE Futures Exchange, the newest futures exchange in the world, 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.
CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC).For additional information about the CBOE and its products, visit the CBOE website at: http://www.cboe.com/.
