The Commodity Futures Trading Commission approved a change inthe Kansas City Board of Trade’s last trading day for its westernnatural gas futures contract that will place KCBT contractexpiration on the same day as Henry Hub futures go off the board atthe New York Mercantile Exchange. The last trading day will now bethe third business day prior to the first day of the deliverymonth. Formerly, it was the second business day prior to the firstday of the delivery month.
KCBT said the change was made in response to requests fromcustomers and the gas industry, which desired improved east-westarbitrage opportunities created by having the two futures contractsclose on the same day. The change is effective with the November1998 contract month, the last trading day for which will becomeWednesday, Oct. 28. The change also effectively changes the lasttrading day for gas options, which expire the business day prior tothe last trading day in the underlying futures contract month.
KCBT western natural gas futures and options were launched inAugust 1995 as a risk management tool for the western U.S. market.The contract has a delivery point of PG&E Gas Transmission’sPermian/Waha Hub in west Texas.
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