RTS Introduced Inter-Month Spread Credits
OREANDA-NEWS. July 15, 2010. Starting from July 15, 2010 RTS Stock Exchange will provide an inter-month spread credit for opposite positions in futures and/or options on refined silver. When entering into such opposite positions (i.e. when selling a futures/option and simultaneously buying a different contract month), market participants will be required to only post Initial Margin on one of the contracts (whichever is the largest).
The spread credit will improve the financial result of silver contract trades thanks to the reduced funding costs and increase the opportunity for more active arbitrage between the front and back month silver contracts.
FORTS, the derivatives market of RTS, is the leading trading venue for futures and options in