The CBOT® DJ-AIGCI contract, which combines the indexing experience of DowSMJones Indexes and the commodities expertise of AIG Trading Group with the unmatched liquidity and integrity of the CBOT® markets, will open a door of opportunity for investors to this unique asset class.
The DowSMJones-AIG Commodity Index is designed to be a liquid and diversified benchmark for commodities as an asset class. Potential benefits of the DJ-AIGCI include positive returns over time and negative correlation with equities and bonds. In addition, academic research has demonstrated that investments in commodities can provide unique portfolio diversification benefits.
The index currently includes 20 commodities which are weighted both by investor interest--as measured by trading volume in futures contracts on the index's component commodities--and by production. The result is an index that is not skewed toward one commodity, or group of commodities, and yet clearly distinguishes between major and minor commodities, allowing investors a new portfolio tool that reflects the economic significance of commodities as they impact the global economy.
The 20 Commodities currently in the DJ-AIGCI are :Aluminum, Cattle, Cocoa, Coffee, Copper, Corn, Cotton, Crude-Oil, Gold, Heating Oil, Hogs, Natural-Gas, Nickel, Silver, Soybeans, Soybean Oil, Sugar, Unleaded Gas, Wheat, Zinc.
Following are the contract specifications:
Salient Features: CBOT®" DowSMJones-AIG Commodity IndexSM Futures
- Trading Unit: $100 times the DowSMJones-AIG Futures Price Index
- Price Quote: Points ($100)
- Tick Size: 0.1 point ($10 per contract)
- Daily Price Limit: No limit
- Contract Months: January, February, April, June, August, October, and December (first three months listed at all times).
- Last Trading Day: The eleventh business day of the contract month
- Final Settlement Day: The eleventh business day of the contract month
- Settlement: Cash settlement on the final settlement day. The final settlement price is $100 times the DowSMJones-AIG Futures Price Index
- Trading Hours: 8:15 a.m. - 2:15 p.m. Chicago time
- Ticker Symbol: AI
About the Chicago Board of Trade
Providing a diverse mix of financial and commodity futures and options-on-futures products, the Chicago Board of Trade advances into the 21st Century on the strength of over 150 years of member-trader expertise, unparalleled liquidity, and market integrity. Via open outcry and screen-based trading, the CBOT®" provides premier customer service to risk managers and investors worldwide. Established in 1848, the CBOT® was launched originally for agricultural producers to achieve price protection. Today, CBOT® members trade more than 60 different products, including futures and options-on-futures on U.S. Treasury bonds and notes, the DowSM Jones Industrial Average and other DowSM Jones indices, Agency debt, a Municipal Bond index, and Mortgages. In August 2000, the CBOT® was reincorporated in Delaware as a Delaware not-for-profit corporation.
About AIG Trading Group Inc.
AIG Trading Group Inc. is a member company of American International Group, Inc. (AIG). AIG Trading , through its subsidiaries, engages in trading and market making in foreign exchange, emerging market debt, precious and base metals, energy products and commodity indices. AIG Trading provides highly personalized customer service and creates innovative risk management products for multinational corporations, financial institutions, commercial producers and users, institutional investors and sovereign entities. AIG Trading's breadth of services include currency and commodities prime brokerage, client-tailored back-office support, and access to e-commerce trading portals and insightful political-economic research from leading figures in the financial services industry. AIG Trading operates through a worldwide network of offices including its Greenwich, Connecticut headquarters, London, Paris, Singapore, and Toronto.
About American International Group, Inc.
AIG is the leading U.S.-based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write a wide range of commercial, personal and life insurance products through a variety of distribution channels in approximately 130 countries and jurisdictions throughout the world. AIG's global businesses also include financial services and asset management, including aircraft leasing, financial products, trading and market making, consumer finance, institutional, retail and direct investment fun asset management, real estate investment management, and retirement savings products. American International Group, Inc.'s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.
About DowSM Jones Indexes
DowSM Jones Indexes is a premier global provider of investable indexes, including the DowSM Jones Averages, the DowSM Jones Global Titans 50, the DowSM Jones Asian Titans 50, the DowSM Jones Sector Titans, the DowSM Jones Global Indexes, the Pan-European DowSM Jones STOXX Indexes, the DowSM Jones U.K. Titans 50, the DowSM Jones Canada 40, the DowSM Jones Japan 100, the DowSM Jones Total Market Index Series, the DowSM Jones REIT Indexes, the DowSM Jones-AIG Commodity Index, the DowSM Jones Islamic Market Indexes, the DowSM Jones Internet Indexes, and the DowSM Jones Sustainability Group Indexes. DowSM Jones Indexes is part of DowSM Jones & Company, which publishes the world's most vital business and financial news and information.
"DowSM Jones" and "AIG" are service marks of DowSM Jones & Company, Inc. and American International Group, Inc. ("AIG"), as the case may be, and have been licensed for use for certain purposes. DowSM Jones does not sponsor, promote, or sell any product based on the DowSM Jones-AIG Commodity Index and none of DowSM Jones, AIG or AIG Trading Group Inc. and their respective affiliates make any representation herein regarding the advisability of investing in any product based on the Index.
