Synthetic futures for commodity options on calendar spreads???

TraDaToR

TraDaToR

On July 24, CME will launch new synthetic futures for calendar spread options, like for example jul -dec soybean calendar spread options.

What are these ? I am missing something...What is the point of having synthetic futures? The underlying calendar spread market already exists...I understand the need for calendar spread options because you can't reproduce a calendar spread option with a combo of options on both legs but I don't understand the need for synthetic futures here.


Thoughts?

:confused:
 
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