LONDON, Sept. 13, 2016 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced that the first EU Wheat futures contracts were traded on
Monday, September 12, 2016. A total
of 411 futures contracts were traded, equaling over 20,000 metric
tons. Trades took place in five delivery months from December 2016 up to December 2017. Open interest for the first day of
trading stands at 180 contracts.
"We're pleased to see strong early support for our EU Wheat
futures contract across the curve," said Tim Andriesen,
Managing Director, Agricultural Products, CME Group. "Today's
trading volumes show the formation of healthy levels of liquidity
and validate our approach in designing the contract in close
collaboration with the industry. We believe this new contract
provides our commercial customers with risk management tools that
reflect the way they price and hedge their physical contracts."
The contract encourages a forward price curve similar to those
in the CBOT Soft Red Winter and KC Hard Red Winter Wheat futures
markets, by allowing wheat to be held on a warehouse certificate.
This enables EU Wheat futures to provide effective tracking of the
underlying cash market through time, solid convergence, and
subsequently, valuable price risk management capabilities.
The contract launched with 16 warehouses approved for the
delivery of physical EU wheat, taking current committed storage
capacity to around 400,000 metric tons.
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 products and metals.
Around the world, CME Group brings buyers and sellers
together through its CME Globex® electronic trading platform and
its exchanges based in Chicago,
New York and London. CME Group also operates one of
the world's leading central counterparty clearing providers through
CME Clearing and CME Clearing Europe, which offer clearing and
settlement services across asset classes for exchange-traded and
over-the-counter derivatives. CME Group's products and
services ensure that businesses around the world can effectively
manage risk and achieve growth.
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CME-G
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SOURCE CME Group