CBOT® Chairman Nickolas J. Neubauer said, "This new product reinforces the Chicago Board of Trade's goal to continue to be the premier global marketplace. The CBOT® differentiates itself by offering the most liquid and transparent markets, and will continue to align its infrastructure and capabilities to grow existing products and develop new products, such as the mini-sized DowSMcontract, that reflect an economic benefit to the customer."
This new contract is one in a series of new products that the CBOT® plans to bring to the marketplace, and that will furnish new, more effective risk management tools for market participants, particularly those seeking benchmark alternatives to Treasury securities.
The new CBOT® mini-sized DowSMcontract will offer institutional and retail investors an opportunity to preserve their investment value during times of market uncertainty and turmoil while providing the ability to hedge stock holdings and to trade futures on the world's best-known stock index.
Following are the CBOT®‚ mini-sized DowSM futures contract specifications. For more information on risk management products, including mini-sized agricultural fixed-income, and precious metals contracts, traded at the CBOT®, visit www.cbot.com/mini
SALIENT FEATURES FOR: CBOT® mini-sized DOW FUTURES
CBOT® mini-sized DowSMFutures
Trading Unit: $2.00 times the DowSMJones Industrial Average ("DJIASM") Index. The DJIASM is a price-weighted index of thirty of the largest, most liquid U.S. stocks.
Price Quote: The price of the mini-sized DowSM is quoted in index points, e.g., 10355, and one point is worth $2.00.
Tick Size: The minimum price fluctuation is one point.
Contract Months: March, June, September, and December.
Last Trading Day: The trading day preceeding the final settlement day.
Final Settlement Day: The third Friday of the contract month.
Settlement: Cash settlement is on the final settlement day. The final settlement price is a Special Opening quotation of the index calculated from the opening prices of component stocks.
Position and Reportable Limits: The position limit is 50,000 contracts and the reportable limit is 25 contracts. These limits apply to all CBOT®® DJIASMSM contracts combined, and a CBOT®® mini-sized DowSM futures contract is deemed equivalent to one-fifth of a CBOT®® DJIASMSM futures contract.
Daily Price Limits: Successive 10%, 20%, and 30% limits.
Trading Hours: a/c/eSM- 8:15 p.m. to 4:00 p.m. (Chicago time).
Margins: To be determined.
Ticker Symbol: YJ
Representative Contract Value: $20,700 = $2 * 10,350 (on 7/21/01)
