Through the licensing agreement with the permission of Dow JonesSM Indexes, the CBOT will permit the SFE to use the settlement prices of the CBOT mini-sized DOWSM futures contract to settle a new SFE CBOT 1-Day Mini-sized DOWSM Option contract. The contract will launch on the SFE’s electronic platform, SYCOM, in early 2006, subject to regulatory approval from Australian Securities & Investments Commission and Commodity Futures Trading Commission.
Dow Jones Indexes and the SFE separately entered into a license agreement pursuant to which Dow Jones Indexes granted the SFE the right to use the Dow Jones Industrial Average and its related trademarks for use with the one-day mini-sized Dow options contract. The SFE currently trades intra-day options and overnight options on three-year and 10-year Commonwealth Treasury futures contracts. No launch date for the options contract on CBOT 100 oz. gold has been identified yet.
Bernard W. Dan, President and CEO for the CBOT said, “The CBOT-SFE agreement is another important agreement by the CBOT in the Asia-Pacific region. By having the SFE 1-day option contracts settling to existing CBOT mini-sized DowSM and CBOT 100 oz. gold futures contracts, we seek to expand the volume and liquidity for these contracts during Asian hours. We appreciate the collaborative effort put forth by the SFE and Dow Jones & Company in licensing the Dow Jones Industrial Average to bring the SFE’s new contracts to fruition.”
“The SFE 1-Day Mini-sized DowSM Option represents the first contract that SFE has produced in collaboration with the CBOT,” said Robert Elstone, Managing Director and CEO of SFE. “We look forward to working with the CBOT to make it a success and, hopefully, it will be the first step towards broader cooperation between our two exchanges.”
SFE will be responsible for the development of the SFE CBOT 1-Day Mini-sized DowSM Option and both companies will provide pre and post launch marketing support.
