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S Illinois | They could bid off any month they wanted. It doesn’t matter what the board price is as they don’t trade that. They trade basis and basis can be quoted against any month they want. What SX25 based bids do get them is 5 times as much OI to trade against when compared to Aug and Sept contracts . Low OI means higher volatility and less ability to do swaps. So they have a value they can sell into and their bid will all be based on that.
Edit: Didn’t look at the market before I replied. There is a carry from U to X so they would bid off U if they cared about which contract was cheapest.
Edited by w1891 6/12/2025 22:24
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Basis games
