Record Open Interest in Minneapolis
Grain Exchange Hard Winter Wheat Index (HWI) Futures and Options
- October 28, 2003
MINNEAPOLIS–Open interest in Hard Winter Wheat Index (HWI)
futures and options, traded at the Minneapolis Grain Exchange (MGEX)
since May 9, 2003, reached a record 3,243 contracts at the end of
the trading day on Friday, October 24, 2003. Open interest is the
number of open positions held at the end of the day by market participants
in all contract months and is a measure of a market’s liquidity.
Of the 3,243 HWI contracts, 1,286 were futures and 1,957 were options.
In addition, HWI futures and options volume recorded daily highs
with 392 futures and 405 options contracts trading on October 24.
Volume remained steady at the end of trading day on Monday, October
27, 2003 with 237 futures and 130 options contracts.
HWI futures and options, traded on the Exchange’s electronic
platform, MGEXpress®, are the first financially settled wheat
futures and options traded in the U.S. The settlement index,
the Hard Winter Wheat Index (HWI), is a simple average of approximately
400 country elevator bids collected daily by Data Transmission Network
(DTN), an Omaha-based electronic commerce and information services
HWI futures and options contracts settle financially each calendar
month to a three-day average of the spot Hard Winter Wheat Index.
DTN collects elevator bids daily for hard red winter wheat and averages
them to arrive at the HWI. The contracts reflect country-origin
pricing for hard red winter wheat. Because there is no delivery
alternative, futures and options contracts expire simultaneously.
Trading hours for HWI futures and options are as follows:
Morning session: 8:30 a.m. until 1:30 p.m. (Central Time)
Afternoon session: 2:00 p.m. until 4:00 p.m. (Central Time)
MGEX, established in 1881, is the only market for hard red spring
wheat, Hard Winter Wheat Index (HWI), National Corn Index (NCI)
and National Soybean Index (NSI) futures and options. www.mgex.com