Florida-based ECN NexTrade, which has filed an application
with Commodity Futures Trading Commission to create the
NexTrade Futures Exchange, plans to introduce a new type of
options on futures contract as part of the new exchange's
Frank Bachinsky, head of NexTrade exchange operations in
Clearwater, Florida told FO Week that NexTrade plans
to offer a patented "expirationless" options on futures
contract. "Because time decay is not a component of it, it
provides less risk to the participants trading that contract,"
Bachinsky said. "It eliminates the rollover costs of
maintaining a futures position. It also creates a trading
opportunity to trade between the futures contract and an
expiring options contract. The interest in that product class
has been very high."
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