These new developments coincide with the one-year anniversary of the 10-Year Muni Note contract, which was launched on October 25, 2002.
Under normal market conditions Nassau Street Capital, will make markets no wider than 4 ticks for 20 contracts for outright Muni Note futures positions, as well as for inter-commodity spreads between Muni Note futures and CBOT Treasury bond futures contract (MOB) and CBOT 10-year Treasury note futures contract (MUT).
The revision to the calculation of the final settlement price will allow the Muni Note futures contract to better track the underlying cash municipal market, facilitating its efficiency as a risk management and trading tool. This change was approved by the CBOT Board of Directors at its meeting on October 21, 2003, and is effective for the December 2003 expiry.
CBOT President and CEO Bernard Dan said, "This revision to the Muni Note settlement price calculation is another example of how the CBOT strives to ensure that our futures products keep in step with the needs of our customers. Coupled with our market maker program, this is one of the many ways the exchange is working to enhance liquidity, service and business opportunities for our customers and members in the municipal market. I am very pleased that Nassau Street Capital has committed to function as the designated market maker in our 10-Year Muni Note futures contract."
Ian Schaad, Nassau Street Capital, LLC, Managing Director, said, "Nassau Street Capital is pleased to be involved in the 10-Year Muni Note market maker program. We look forward to providing liquidity and working with the CBOT in building this product."
For more information on 10-Year Municipal Note futures and other CBOT products, visit the exchange web site at www.cbot.com.
