REVISED IMPORTANT: Trade-At-Marker (TAM) Starts on June 13, 2011

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On Monday June 13, pending  receipt of required regulatory approvals, CME will introduce Trade-At-Marker (TAM) trading on CME Globex.  The initial product set is as follows:

TAM trading is exactly analogous to the existing Trade-At-Settlement (TAS) trading:  you trade at a differential to a not-yet-known price.  For TAS, that not-yet-known price is the end-of-day settlement price, and for TAM, it’s some other value – a “marker” price.  For any given contract, there could be more than one marker relative to which you can trade.  There will be a new TAM trading symbol for each new marker introduced.

The 4:30pm London marker time for the initial TAM product set corresponds to the London market close, and allows market participants to trade relative to that close.  TAM trades will be allowed for these products at differential prices up to ten ticks above or below the marker price.

Regardless of whether you trade TAS or TAM, the mechanics are the same.