The indicative calculation will be from 3 a.m. to 9:30 a.m. EDT (2 a.m. to 8:30 a.m. CST), when component pricing will shift to the New York Stock Exchange (NYSE) and Nasdaq markets. Real-time DJIA SM values and market makers for component stocks for trading on Xetra are expected to lead to improved price discovery and liquidity for DJIA SM products.
The extended hours of the DJIA SM calculation will for the first time provide real-time index levels for the CBOT® DJIA SM futures during overnight trading. CBOT® DJIA SM futures and options trade electronically on the a/c/e (alliance/cbot/eurex) platform from 8:15 p.m. to 4 p.m. CST and start trading on the floor at 7:15 a.m. CST, one hour before the opening bell of the NYSE & Nasdaq. Options on the DJIA SM future trade on the floor from 7:20 a.m. to 3:15 p.m. CST.
Trading CBOT® DJIA SM futures via the a/c/e platform gives traders the opportunity to take effective action in response to breaking domestic and international news, much of which first airs after the regular U.S. daytime market closes. The ability to trade CBOT® DJIA SM futures contracts 20 hours a day means traders can offset the risks from trading U.S. stocks on global exchanges, adjust asset allocations and capitalize on arbitrage opportunities that emerge around the clock. For Xetra basket traders, the extended index calculation and a/c/e platform availability increases the ease of arbitrage.
Customers should contact their brokers for information on accessing a/c/e. CBOT® members should check with their primary clearing member to see how to access a/c/e. General information regarding the a/c/e trading platform can be found online at www.cbot.com. For more information on CBOT® DJIA SM futures please contact Barbara Schmidt-Bailey or Catherine Shalen at +1 312-341-7955. For an in-depth analysis of trading opportunities with overnight electronic trading please see the upcoming July 2001 article "Opportunities with Electronic Trading" on cbot.com.
