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Wholesale trading
Introduction
Asset allocation
Basis trading
Block trade facility
Introduction Contract combinations Hedge ratios
 
Under the Asset Allocation facility, members and their clients are able to simultaneously execute trades consisting of the following combinations of contracts:

For combinations of the same duration:

  1. Universal Stock Futures contracts v Universal Stock Futures contracts;
  2. Equity Index contracts v Equity Index contracts;
  3. Equity Index contracts v Bond contracts;
  4. Equity Index contracts v Bond Index contracts; 
  5. Short term interest rate (STIR) contracts v STIR contracts;
  6. Bond contracts v Bond contracts;
  7. Bond contracts v Swapnote® contracts;
  8. Swapnote contracts v Swapnote® contracts;
  9. Bond Index contracts v Bond contracts;
  10. Bond Index contracts v Bond Index contracts; and
  11. Bond Index contracts v Swapnote® contracts. 

For combinations of different duration:

  1. STIR contracts v Bond contracts;
  2. STIR contracts v Swapnote® contracts;
  3. STIR contracts v Bond Index contracts; 
  4. Bond contracts v Bond contracts;
  5. Bond contracts v Swapnote® contracts;
  6. Bond contracts v Bond Index contracts;
  7. Swapnote® contracts v Swapnote® contracts;
  8. Swapnote® contracts v Bond Index contracts; and
  9. Bond Index contracts v Bond Index contracts.

For combinations of options

  1. STIR options v STIR options

In respect of asset allocation trades between two STIR contracts, the two legs of the trade must involve the same delivery month (e.g. Sep 08 Euribor® versus Sep 08 Short Sterling contracts but not Dec 08 Short Sterling contracts).