Definition of Trading Codes: The structure used to represent futures contract codes is a crucial element in comprehending pricing across a range of contract expirations.
Typically, contract display codes consist of concise one- to three-letter sequences that identify the particular product, accompanied by additional characters denoting the month and year of contract expiry. The composition of a contract code varies depending on the asset class and the trading platform. Many contract codes originated in the realm of open outcry trading, where the intention was to convey maximal information with minimal characters, and these codes have transitioned seamlessly into the electronic trading environment.
To illustrate this concept, let's begin by examining the E-mini S&P 500 futures contract. On the CME Globex trading platform, this product is represented by the contract code ES, a nomenclature that remains consistent on CME ClearPort as well. Now, shifting our focus to the Eurodollar futures contract, we find that on CME Globex, it is identified by the code GE, whereas on CME ClearPort, the corresponding code is ED. It is paramount to acknowledge the potential variability of contract codes across different trading platforms.
In terms of contract expiration, supplementary characters appended to the right of the contract code serve to indicate the specific month and year of expiration.
Each calendar month's expiration is denoted by a singular letter, as follows:
January – F
February - G
March - H
April - J
May - K
June - M
July - N
August - Q
September - U
October - V
November - X
December - Z
While the availability of contract expiration months might diverge based on the product, it's essential to note that the letter succeeding the contract code invariably signifies the expiration month. The year of expiration is indicated following the month, represented numerically depending on the exchange or platform is usually represented by the last number in the year.