Download PDF, Issue 26 - Swiss Futures and Options Association

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Leveraging Precious Metals Experience Special Successfully trading precious metals futures contracts for over 34 years, the Chicago Board of Trade is currently expanding its product range. The Swiss Derivatives Review met the Board of Trade’s President and CEO, Bernard W. Dan at the 25 th International Derivatives Conference on Bürgenstock. 22 Swiss Derivatives Review: Mr. Dan, the CBOT has a long history in precious metals trading. What are the parameters of the current product expansion? Bernard Dan: We have offered futures contracts in gold and silver for more than three decades. Our current metals products are hugely successful among investors. For instance, year-to-date volume in our mini-sized Gold and Silver contracts have seen organic growth of over 260 percent in mini-sized Gold and over 650 percent in mini-sized Silver. Yet, market participants increasingly asked for CBOT full-sized contracts. So in reality, the current product launch is not about a new product. We are leveraging our experience in precious metals futures to launch full-sized futures. we have all the prerequisites in place to offer investors the best trading environment available in metals futures. SDR: What are the specifics of this offering? Bernard Dan: Our value proposition includes fast execution, high transparency, global reach and enhanced liquidity. These are four key factors we perceive as clear competitive advantages vis-à-vis other markets. All CBOT futures contracts in Gold and Silver will trade on our high performance electronic trading platform, which provides straight through processing. This greatly improves transparency and speed while accommodating all market participants, including retail and institutional investors. Further, our electronic distribution model allows for 21 hours trading, achieving open access for participants around the world. SDR: What about liquidity? Bernard Dan: We launched the full-sized contracts with a broader distribution in mind. This is why we have committed market makers to provide liquidity in the new contracts. Up to six market makers will compete with each other to ensure tight spreads and efficient, deep markets. SDR: So your customers are predominantly commercial metals traders? Bernard Dan: These contracts and the superior electronic trading platform likely will appeal to all hedge and speculative traders, including: retail, institutional, commercial, proprietary trading operations, trading arcades, commodity trading advisors, floor traders, hedge fund advisors, commodity funds and exchange members (CBOT and others). By offering both full- and mini-sized metals contracts, the CBOT is responding to the entire range of customers’ needs for metals products. SDR: In the light of the broader geopolitical picture, the timing seems to be pretty good. Bernard Dan: It is true that when political uncertainty is rising, precious metals gain the interest of market participants. However, there has been demand for these full-sized products for some time, independent of world politics. With our superior electronic platform exceeding even the highest expectations, Launched on October 6, CBOT fullsized Gold futures (100 ounce), and CBOT full-sized Silver futures (5,000 ounce), will complement the exchange’s existing mini-sized metals contracts. CBOT mini-sized Gold futures (33.2 ounce), and CBOT mini-sized Silver futures (1,000 ounce) also trade exclusively on the exchange’s electronic trading platform. SWISS DERIVATIVES REVIEW 26 – NOVEMBER 2004
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Page 1 and 2: SWISS DERIVATIVES ISSUE 26 - NOVEMB
Page 3 and 4: Contents Contents SWISS FUTURES AND
Page 5 and 6: Dear Members and Friends of SFOA Ed
Page 7 and 8: Focus Treasury. Then came Ginnie Ma
Page 9 and 10: “This approach moves us in the di
Page 11 and 12: WHEN YOUR FIRST NAME IS “NEW,”
Page 13 and 14: Focus Union’s regulators in terms
Page 15 and 16: “There’s no rule saying banks c
Page 17 and 18: The rush of endless opportunity. Li
Page 19 and 20: Further your future: team up with a
Page 21: “Investor interest in gold was re
Page 25 and 26: “The Stone Age didn’t end becau
Page 27 and 28: A blazing sponsor for Friday night
Page 29 and 30: CNBC Europe reporting live from Bü
Page 31 and 32: A fascinating presentation by ballo
Page 33 and 34: “Swiss taxation is very advantage
Page 35 and 36: “These results seriously question
Page 37 and 38: D O W J O N E S I N D E X E S THE D
Page 39 and 40: “ ‘Carry’ strategies and even
Page 41 and 42: Education Chart 2 Overbought zone (
Page 43 and 44: Bollinger Bands Let’s briefly rev
Page 46 and 47: Emerging Markets A Perspective on E
Page 48 and 49: Profile IFRI - The International Fi
Page 50 and 51: Profile 50 Official Publication of

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