07/29/2003
Through August 29, Koch Metals, through its designated floor broker, will maintain an orderly, two-sided market throughout the open outcry session for aluminum futures. Beginning on September 2, Koch Metals will continue to serve in this capacity during the first 40 minutes of open outcry trading and the last 40 minutes, but not for the period in between.
The Exchange has been very pleased with the growth of the aluminum futures contract in the two years that Koch Metals has acted as the specialist market maker and feels that this is the logical next step to developing a level of liquidity where the contract can stand on its own. The Exchange is delighted that Koch Metals has agreed to continue supporting the contract in this amended role, shepherding it further along the path of success.
Other terms will remain the same, including:
- the requirement that Koch Metals will provide bids and offers for a minimum of 25 contracts at a maximum bid/ask spread of 20 points for the first four listed trading months;
- the obligation to make a market for any consecutive four-month calendar strip during the first 12 listed months for 10 contracts per month at a maximum bid/ask spread of 25 points;
- the responsibility to offer a two-sided market for a minimum of 50 spread contracts at a maximum bid/ask spread of 20 points for any and all inter-month spreads involving the first 12 listed months;
- Koch Metals is not required to provide quotes in a contract between the first notice day and the last trading day but will make a reasonable effort under normal market conditions to do so;
- In abnormal market conditions, which Koch Metals is required to announce with explanation, the firm must offer a two-sided market for the quantities listed above, but is able to, in good faith, determine the appropriate bid/ask spread.