MGEX Announces The Launch Of Calendar Spread Options

MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), announces the launch of calendar spread options (CSOs)for the North American Hard Red Spring Wheat (HRSW) contract. MGEX HRSW CSOs will be available for trade on CME Globex® as of February 1, 2015, for trade date February 2.

CSOs are options on the price differential between two delivery months of the same futures contract. CSOs allow traders to efficiently spread different delivery months in a single transaction, eliminating the need for multiple transactions as part of a spread trading strategy.

“MGEX is pleased to announce this product offering to market participants,” said Mark G. Bagan, President & CEO, MGEX. “The ability to trade calendar spreads with onetransaction provides an additional efficiency to trading MGEX’s flagship contract.”

CSOs will be available for trade from 7:00 p.m. to 1:30 p.m. (CT) with a pause between7:45 a.m. and 8:30 a.m. (CT).