Chicago Board of Trade (CBoT) and NexTrade are in
preliminary talks about a possible deal to use NexTrade's new
expirationless option product.
Executives at NexTrade, a Florida-based ECN that recently
shelved an application for regulatory approval to launch a
futures exchange, said that it is sharing information with CBoT
officials about expirationless options with the hopes of
helping CBoT launch such new contracts.
Expirationless options are unique because, as the name
indicates, they have no time component like traditional futures
and options contracts. Such contracts are interesting to
exchanges and OTC markets because they eliminate the rollover
costs in maintaining a futures position and can also be used to
trade in concert with futures or traditional options, said
Frank Bachinsky, head of exchange initiatives for
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