Attention All Spread Traders!!!
MRCI published Strategy #4406, a Long April/Short September Brent Crude Oil (CBJ/CBU) spread with entry 2/11 and exit 3/2. However, the InterContinental Exchange (ICE), upon which Brent Crude Oil trades, changed their Last Trading Day (LTD) for Brent Crude Oil as follows: "trading shall cease ... on the last business day of the second month preceding the relevant contract month." In other words, April Brent Crude will expire 2/29 --- thereby rendering that strategy null and void. Traders who hold April Brent Crude Oil through expiry are subject to delivery because ... "the ICE Brent Crude futures contract is a deliverable contract based on EFP delivery with an option to cash settle."
Thus, MRCI now presents an similar but alternative spread as Strategy #4406: Long May/Short December Brent Crude Oil (CBK/CBZ) with the same entry and exit dates. This strategy, with its details and charts now available at MRCI Online, has succeeded in 12 of the last 15 years and generated an average profit of US$604. Both contracts are exceptionally liquid. We apologize for the confusion and inconvenience.