Contract specifications for CME's electronic GSCI futures will be identical to those traded in the open outcry market and fully fungible with the open outcry contracts. Both electronic and floor trading will be available during regular floor trading hours of 8:15 a.m. to 2:15 p.m. Electronic trading will be offered via CME's GLOBEX® electronic trading system* from 2:45 p.m. (5:30 p.m. on Sundays) until 2:15 p.m. the following day.
Also on Feb. 19, 2002, CME will begin permitting block trades in GSCI futures, with a minimum of 50 contracts for outright positions and 300 contracts per side for spreads.
The GSCI is a world production-weighted commodity index composed of 26 liquid exchange-traded futures contracts. Designed as a benchmark for commodity prices, the GSCI measures the level of world commodity prices. CME, the leader in index futures products, introduced futures and options on the GSCI in 1992. GSCI futures and options allow for portfolio diversification and exposure to real assets.
A block trade is a privately negotiated futures or option transaction executed apart from the public auction market. Block transactions may be executed by eligible parties on or off CME trading floors. They must be priced at "fair and reasonable" levels in light of the size of the transaction and the circumstances of the parties to the transaction.
Eligible participants include exchange members and member firms, broker/dealers, government entities, pension funds, commodity pools, corporations, investment companies, insurance companies, depository institutions and high net worth individuals. In addition, Commodity Trading Advisors (CTAs) and registered investment advisors-with net assets under management of at least $25 million-may also conduct block transactions.
