Intro ---- DJ-AIG commodity index Futures

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1553+41685,00.html

It sounds quivalent to mutual fund / index ETF versus futures pool / futures index ETF

As of date, the volumn on ECBOT is very thin about max 200 less a day.  But we will expect individual investors demand driven volumn higher.

It uses standard futures contract to do the similar thing to those used in OTC swap market.

Most individuals cannot afford to access OTC swap market to expose commodity market.





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DJ-AIGCI Excess Return Futures Reference Guide

Commodities as an asset class have become a standard component of many diversified financial portfolios.  On a global basis, as of June 2006 there was an estimated $95 billion tracking commodity indexes, with an estimated $30 billion tracking the Dow Jones-AIG Commodity Index^SM ("DJ-AIGCI^SM")¹.  A significant amount of this notional exposure is achieved through the use of swaps.  The CBOT DJ-AIGCI^SM Excess Return futures contract ("DJ-AIG ER^SM") is designed to provide a highly liquid, standardized alternative to custom over-the-counter transactions on the DJ-AIGCI^SM.

The CBOT DJ-AIGCI^SM Excess Return futures contract is designed to provide a highly liquid, standardized alternative to custom over-the-counter transaction on the
DJ-AIGCI^SM.


Some key features of the DJ-AIG ER^SM  futures contract are as follows

Designed to track the DJ-AIGCI^SM, which is calculated on an excess return basis

Embedded fee that mirrors the mechanics of the over the counter(OTC) commodity index swap market

Qurterly expireations in the first calendar year with lised maturities up to five yeras

DJ-AIG ER^SM  futures contract is designed to track the DJ-AIGCI^SM in a financial vehicle similar to those
used in the OTC swap market.


Prior to April  2006, the DJ-AIGCI^SM  referenced the NYMEX New York Harbor Unleaded Gasoline contract. During the April 2006
roll period, the DJ-AIGCI^SM switched to the Reformulated Gasoline Blendstock for Oxygen Blending (RBOB) contract --from
DJ-AIGCI guid


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