The waiver program that began March 1, 2003, was scheduled to expire May 30, 2003, and was enacted to enhance volume and liquidity in the CBOT mini-sized metals contracts. Trading volume and open interest in the CBOT's mini-sized metals contracts has increased significantly, with total volume in 2002 up 11% from 2001, and the first quarter 2003 volume up more than 809% from the first quarter of 2002. Historical volatility averaged 19.2% during the first quarter of 2003 for the nearby CBOT mini-sized Gold futures contract and 17.6% for the nearby CBOT mini-sized Silver futures contract.
Other key benefits of trading CBOT mini-sized Gold and Silver futures contracts include continuous two-sided markets, provided by TradeLink L.L.C., which acts as the Electronic Market Maker (EMM) in CBOT precious metals, and free real-time quotes provided on the CBOT web site.
Additionally, traders have the advantage of a longer trading day since trading in the CBOT mini-sized Gold and Silver contracts was extended on March 3, 2003, to 8:15 p.m. to 4:00 p.m., Central Time, from the previous 8:15 p.m. to 1:45 p.m. trading day.
