Futures Exchange Leader Calls for Lowering Minimum On CFE Contractsbr>
CBOE Future Exchange (CFE) managing director Matthew McFarland has proposed lowering the minimum increment on its futures contracts.
In a letter sent April 17 to the Commodity Futures Trading Commission (CFTC) McFarland requested a rule amendment that would lower the minimum increment on its futures contracts from 10 points (worth $10) to 5 points (worth $5) sometime on or after May 1.
The move would have a “positive impact on the market in XBT futures,” McFarland said in the letter.
Any change will apply to single leg transactions (those with one contract) and not the multiple spread contracts. The request comes as CFE has studied the data collected since the start of its futures contracts last December.
“CFE intends to continue to evaluate its experience with the trading in XBT futures and may determine to make future changes relating to XBT futures in light of that experience,” McFarland said.