The new CBOT® mini-sized DowSM($5) contract is one-half the size of the original CBOT® DowSMJones Industrial Average (DJIASM) futures contract. The value of a CBOT® mini-sized DowSM contract is its multiplier times the DJIASM index level.
CBOT® Chairman Nickolas J. Neubauer said, "The CBOT® received strong encouragement from customers to launch a new mini-sized contract and we are responding. The introduction of the CBOT® mini-sized DowSM contract with a $5 multiplier complements our existing DowSM Equity and CBOT® Index complexes. This unique synergy, combined with the trading expertise and liquidity provided by our DowSM traders, ensures the best fit for open auction and screen arbitrage opportunities for our members and retail customers.
"In addition to electronic market makers, a new CBOT® arbitrage program, with multiple firms participating, is now in place to promote an environment conducive to arbitrage and spreading between the open auction contracts and electronic mini-sized contracts."
CBOT® DJIASM and mini-sized DowSM futures contracts based on the DowSM Jones Industrial Average -- the world's most readily recognized and followed stock index -- provide large and small investors a way to profit by taking a position based on the performance of the DJIASM, to diversify and protect their portfolios against adverse price changes in the stock market, and to preserve investment value.
On April 5, the CBOT® will cancel side-by-side trading for its DJIASM futures and futures-option contracts. The new trading hours for the CBOT® DowSMJones complex are as follows:
DJIASM futures & futures options - open outcry: 7:20 a.m. -3:15p.m.; electronic: 8:15 p.m. - 7:00 a.m.; CBOT® mini-sized DowSM($2) and ($5) contracts - electronic: 8:15 p.m. - 4:00 p.m.
