Charting and Studies User Guide - CQG.com

Page 24
Setting Bond Continuation Preferences
The Bond Continuation tab allows you to display continuation charts for cash bonds.
For example, in August 2010 when the US government issued new 10-year bonds, the
continuation chart for a 10-year government bond switched from displaying the bond that
matures in February 2020 to one that matures in August 2020. Likewise, in February 2011, the
chart displayed the bond that matures in February 2021.
Bond Continuation charts are updated manually by CQG.
Type Description
No Continuation Sets the current chart to display the data for a single bond
issue. It plots the specified issue to maturity. The resulting
chart is not a continuation chart.
Active Continuation – rollover
with trading activity and
optionally equalize opens
Selecting Chart Preferences
Sets the chart to display data for the benchmark. Once the
transition occurs between the outgoing benchmark and the
new benchmark, the new benchmark remains the active
issue until a new benchmark is listed. Colored horizontal
bars appear at the bottom of the continuation charts,
directly above the time scale, to indicate the time period that
issue was the benchmark. Additionally, you have the option
to equalize the opens. CQG equalizes opens by adding to the
new benchmark the difference between the old benchmark
and the new benchmark.
Equalize opens Makes the expiration comparisons more relevant. The
equalization is applied on the day of the rollover (determined
by the switch in the most active contract) according to the
following example:
Example:
CUS on 12/11/97 = 954.40
SPH on 12/11/97 = 965.30
Amount of Adjustment = 965.30 – 954.40 = 10.90
This figure (10.90) is added to the older contract to arrive at
the value displayed on the continuation chart for 12/11/97.