Sydney Futures Exchange: A New Australian Way To Manage Intra-Day US Treasury Note Exposure

On 12th April, 2005 Sydney Futures Exchange (SFE) will launch an important new product for those who closely manage intra-day exposure to US Treasury Note prices.

The SFE will launch a US 10 Year Treasury Note One Session Option (the US T-Note One Session Option) that will be listed over the “On-the-Run” US 10 Year Treasury Note - the most recently issued US Treasury Note of 10 Year maturity (currently the 4.00% February 2015).

The US T-Note One Session Option is the latest in SFE’s innovative and unique suite of One Session Options. A One Session Option is a short dated, exchange traded option with a lifespan of only one trading session. The US T-Note One Session Option is an ideal tool for either:

Managing short-term exposures to US Treasury Note prices
Hedging existing futures and over-the-counter positions against event risk
Outright trading.

Peter Hiom, General Manager, Exchange Business Development said “This newest contract in SFE’s suite of One Session Options will provide additional opportunities for those managing intra-day exposure to US T- Note prices as well as for proprietary style traders.”

The US 10 Year Treasury Note One Session Option will be available for trade at 5.10pm Sydney time (or 3.10am New York time, prior to the US Bond market open) and will close at 5.00 am Sydney time, or 3.00pm New York time.

For further information about the product, including Product Specifications and Data Vendor Access Codes, please refer to www.sfe.com.au/tnote