Reference no: EM133091258
SUBJECT: Copper
Select an Exchange from the list below:
• Intercontinental Exchange
• Chicago Board of Trade
• New York Mercantile Exchange
• Kansas City Board of Trade
• Minneapolis Grain Exchange
• New York Board of Trade
• Chicago Mercantile Exchange
• Chicago Board Options Exchange
• Boston Options Exchange
• Euronext
1. Background and characteristics of the Exchange.
• Typical Derivatives traded
• Procedures
• Trading Rules (For ten commodities, Size of contracts, Expiry dates, warehousing arrangements, what ‘grades' of commodities/securities are acceptable for contracts.)
• How does exchange prepare for defaults.
2. Describe the Margin Rules of the exchange and set up margin accounts for 1 commodity both long and short positions. Assume you can afford 10 contracts and the trading period is the month of November to December. Determine the dollar profit or loss. Use excels to set up the margin accounts. From November 1st to December 6th, 10 short and 10 Long contracts. Use Daily Settlement price (Settlement price each day).
3. Any recent developments in these exchanges (increase in initial margins, maintenance margins etc) and reasons for changes.