Inter-Commodity Spreads on CBOT
Anyone who trades on CBOT might want to read the following link regarding upgrades to their electronic trading platform:
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1027+30129,00.html
Among other upgrades "nine inter-commodity spread strategies for financial products will be added to the system."
It will be interesting to see how the concept takes off as auto-spreading has become such a factor in the bonds/10 yrs/5yrs so I can only assume that the inter-commodity spreads are a popular way of trading - you also get significantly reduced margin on CBOT as they recognise the hedge.
With the launch of the Buxl on 9th September and the fact that spreads like the Bund/Bobl have always been actively traded I wonder if Eurex will also create strategies for their different combinations?
Anyone who trades on CBOT might want to read the following link regarding upgrades to their electronic trading platform:
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1027+30129,00.html
Among other upgrades "nine inter-commodity spread strategies for financial products will be added to the system."
It will be interesting to see how the concept takes off as auto-spreading has become such a factor in the bonds/10 yrs/5yrs so I can only assume that the inter-commodity spreads are a popular way of trading - you also get significantly reduced margin on CBOT as they recognise the hedge.
With the launch of the Buxl on 9th September and the fact that spreads like the Bund/Bobl have always been actively traded I wonder if Eurex will also create strategies for their different combinations?
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