Mar

27

Have there been thoughts about creating daily contracts (in place of monthly contracts) to be traded at exchanges? By daily contracts, I mean futures contracts that expire on daily bases rather than by the months. Then there will be 200 (number of working days) or so contracts in any year, instead of the 12 contracts in a year. I guess this can be done very easily in this digital age - I take it that the monthly contracts are for practical reasons in the old times. This new contract structure would then eliminate the large discontinuity problem, and also create some nice arbitrage opportunities for the large trading parties. Any problems with this?


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