CME BTIC has lots of potential to be an excellent trading instrument

[nitro]

"Basis Trade at Index Close (BTIC) transactions enable market participants to execute a trade as a basis trade relative to the official close for the underlying index for more efficient cash management.

Available as blocks for Select Sector futures, FTSE Russell Index futures and other equity index futures, BTIC transactions offer control and convenience to directly negotiate with a selected eligible counterparty. Newly available on CME Globex for E-mini Russell 1000 Index futures, BTIC transactions offer even more flexibility to execute in a way that suits a range of trading needs."

http://www.cmegroup.com/trading/equity-index/files/btic-block-trades.pdf

 

[wrbtrader]

More trading products for the index futures...geeesh.

 

[jharmon]

So how would you use it?

 

[Amalgam]

So how would you use it?

My first thought is that this would be useful to larger players as a way to concentrate liquidity at EOD on the closing print.

 

[Chubbly]

Is this intended for MM's to get flat at EoD?