Client Management Advisory Notice
From | Client Management
Subject | Stock Index Futures Trade Practices on GLOBEX2 Amended
Effective Date | 04/27/01
Notice Number | NP#0110
Effective Sunday, May 6, 2001, trade practices with respect to stock index futures traded on GLOBEX2 will be amended. These amendments: liberalize current order quantity restrictions, and introduce the concept of "banding". They are intended to bolster trading on GLOBEX2, while filtering out erroneously entered orders from the system � whether that error was quantity or price based. Current order quantity restrictions will be removed in these markets entirely; however, orders in excess of 250 contracts must be entered in increments of no greater than 250. Banding is a routine that scans price-based orders and establishes boundaries, rejecting any orders outside of the "band". The purpose of banding is to minimize error trades. Please refer to Special Executive Report S-3672, which offers a detailed explanation of banding, which will be at www.members.cme.com, available on Monday, April 30, 2001. Please contact Lisa Amato at (312) 338-2654, if you have any questions concerning these amendments. Thank you.