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FAQS ON NEW ICE VS. CBOT AG COMMODITY CONTRACTS
May 7, 2012
by Ivan W. Bartling, Regional Manager Int'l-FCStone
O 636-534-3969, C 314-973-0353, IVBARTLING@aol.com
1. What is the main difference between the ICE US contracts and the current CBOT contracts? The ICE US contracts will be cash-settled and traded exclusively electronically. All other specs are the same as the corresponding CBOT contracts including contract size and price increments.
2. What is cash-settled? Carrying an ICE US contract to last trading day will not result in a delivery. On the LTD day, a final settlement price for the contract will be determined and all open trades will be offset versus that settlement price.
3. How will we trade? These products will be available electronically on QST, the RAN GUI, CQG and the other platforms FCStone offers. There is no open outcry for these contracts.
4. Are the contract fungible? No, contracts traded on ICE US will not offset positions entered on the CBOT.
5. Are EFP, EFS and EOO transactions available? Yes, they are permitted.
The ICE will be hosting a webinar May 8 introducing the new ag products. Here is a link to the meeting.
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