To some extent, stock and index options fall into this category as well. Doing spreads and combinations in the open outcry markets is no problem at all. On the electronic exchanges this very interesting segment of the business is almost completely ignored or can be only unsatisfactorily handled. Financial futures, however, are products that imitate the cash market. The nearby month is traded and the rest is strictly carry charge.
Spreads are a matter of interest just before expiration only.
These aspects and advantages over cash markets are very important for many a client and they alone should ensure prosperity for the markets. However, the exchanges handling these straightforward products face the big challenge of full automation. If they do not solve this challenge, they will fail. In today's fast moving world with growing e-commerce, any exchange can be circumvented. After all, the participants need the products, not the exchanges, and with the Internet any product can be traded as long as there is a buyer and a seller.