Electronic Market-Maker Doubles CBOT's Futures Contract

Fine, Jacob
February 2005
Bond Buyer;2/1/2005, Vol. 351 Issue 32061, p3
Trade Publication
The article reports that open interest in the 10-year municipal note index futures contract grew to 3,455 contracts on Friday, more than doubling since the introduction of an electronic market-maker at the beginning of the year, the Chicago Board of Trade reported. With a market-maker offering continuous two-sided markets on the exchange's premier electronic trading platform, the program has brought customers worldwide even greater trading opportunities and further added to overall liquidity in the contract, said Bernard W. Dan, president and chief executive officer of the board of trade, in a prepared statement yesterday. The municipal futures contract is intended to function as a tool allowing users to hedge their municipal interest rate risk, by allowing users to pay or receive the difference between a set price and the value of the index at a future date.


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