NEW YORK, Sept. 2, 2014 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, announced
today the launch of Illinois Basin
physically delivered Coal futures contracts in October, pending all
regulatory approvals. The contracts will be listed by and
subject to the rules of the New York Mercantile Exchange.
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Illinois Basin Coal Futures
will be CME Group's second physically delivered coal futures
contract in North America. It
builds on the company's global suite of coal futures and options
products, including the benchmark Central Appalachian, Powder River
Basin and CSX Coal Futures in the U.S., and API2 cif ARA, API4 fob
Richards Bay, API5 fob Newcastle, API8 CFR South China, Indonesian
Coal and Australian Coking Coal, which serve growing markets in
Asia and Europe.
"CME Group's global coal complex has experienced tremendous
growth recently, with average daily volume increasing 48 percent to
8,418 lots a day so far this year," said Gary Morsches, Managing Director, Global Energy
at CME Group. "Illinois Basin coal
is an established feedstock for the domestic power industry and is
expected to see strong demand in the future. As this market
continues to expand, our new futures contract will improve price
discovery for coal producers, power generators and coal exporters,
and will offer an effective solution for managing their risk."
Illinois Basin Coal, which is
higher in sulfur than other domestic coals and has heat content
ranges between 10,000 -12,500 British thermal units per pound
(Btu/lb), currently accounts for approximately 13% of total U.S.
production. By 2040, the EIA forecasts its share of domestic
production will swell to 20%. This growth is being driven in part
by recent technical improvements and widespread adoption by U.S.
power plants of scrubber technology, which reduces sulfur dioxide
emissions and makes Illinois Basin
coal a viable alternative to lower-sulfur fuels.
The new CME Group Illinois Basin Coal Futures will have a
contract size of 1,750 short tons, average heat content of 11,500
Btu/lb and will be deliverable on the Ohio River, a primary
corridor in the domestic coal transport network. Ash content will
be a maximum of 12%, chlorine will be a maximum of 0.35% and the
contract will allow a maximum of 3.15% sulfur content.
CME Group Illinois Basin Coal Futures will be available for
trading on the floor and electronically via CME Globex, and for
submission for clearing through CME ClearPort.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. CME Group exchanges offer the widest range of global
benchmark products across all major asset classes, including
futures and options based on interest rates, equity indexes,
foreign exchange, energy, agricultural commodities, metals, weather
and real estate. CME Group brings buyers and sellers
together through its CME Globex® electronic trading
platform and its trading facilities in New York and Chicago. CME Group also
operates CME Clearing, one of the world's leading central
counterparty clearing providers, which offers clearing and
settlement services across asset classes for exchange-traded
contracts and over-the-counter derivatives transactions. These
products and services ensure that businesses everywhere can
substantially mitigate counterparty credit risk.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME,
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Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the
Board of Trade of the City of
Chicago, Inc. NYMEX, New York Mercantile Exchange and
ClearPort are registered trademarks of New York Mercantile
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Further information about CME Group (NASDAQ: CME) and its products
can be found at www.cmegroup.com.
CME-G
SOURCE CME Group