Intermarket Spread

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Intermarket Spread

The purchase of a futures contract and the simultaneous sale of the same contract on a different exchange. An investor enters an intermarket spread when the price for the contract is higher on the second exchange than on the first. One must watch prices on both exchanges in order to enter the spread responsibly; computer programs can assist in this. See also: Arbitrage.
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These two new inter-market spread options, and the existing MGEX-CBOT Wheat Spread Options, will enable agricultural participants to manage the risk associated with the price differentials inherent between the hard red spring (HRS), soft red winter (SRW) and HRW varieties of wheat.
By acting in unison, the exchanges will help customers avoid additional risk resulting from distorted inter-market spread relationships that exist among the wheat markets when price limits are not consistent.
With the introduction of inter-market spread credits, both members and non-members will enjoy a reduction in their BTEX margin requirements for offsetting, or spread positions in U.
The adoption of inter-market spread credits will allow us to further build on this positive development," Mr.
Inter-market spread credits are now available for the 5-year, 10-year and 30-year U.
With the new connection, TT clients will gain the ability to trade benchmark Eris Exchange Interest Rate Swap Futures and inter-market spreads through X_TRADER.
With the new connection, which is currently targeted for release in the fourth quarter of 2012, TT customers will gain the ability to trade benchmark Eris Exchange Interest Rate Swap Futures and inter-market spreads through TT's X_TRADER([R]) trading platform and related products.

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