CHICAGO, Sept. 27, 2016 /PRNewswire/ -- CME Group,
the world's leading and most diverse derivatives marketplace, today
announced that in December it will begin transitioning its CME
Dairy Spot Call, for daily price discovery in physical dairy
markets, to an electronic, transaction-based auction, which can be
accessed through CME Direct. Ultimately, this will replace the
physical spot market held via a limited open outcry session on the
company's Chicago trading floor
that currently facilitates price discovery, trading and delivery of
dairy products such as Cheese Barrels, Cheese Blocks, Butter and
Nonfat Dry Milk.
The dairy products will be transitioned to the platform in two
phases beginning December 5 when the
Nonfat Dry Milk Spot Call trading session will be made available to
customers and market participants through the CME Direct Auction
Platform. Butter and Cheese are expected to transition to the
auction platform during the first quarter of 2017.
"In response to requests from customers and dairy industry
participants, we will begin to transition these markets to our
transaction-based auction platform accessed through CME Direct,"
said Tim Andriesen, CME Group
Managing Director of Agricultural Products. "We believe this will
further enhance the transparency of spot dairy prices, while
expanding access to a broader set of commercial customers, brokers
and other physical market participants. The Dairy Spot Call is
unique to CME Group and assists our customers with physical dairy
market price discovery. We will continue working closely with
customers to ensure a seamless transition, beginning with Nonfat
Dry Milk in December."
The transition of the CME Dairy Spot Call to the electronic CME
Direct Auction Platform will have no impact on the availability and
accessibility of Dairy futures and options products, which are
listed with and subject to the rules and regulations of the
CME.
The CME Direct Auction Platform is an innovative and proven
transaction-based auction platform for trading and price discovery
in physical spot markets. It provides real-time order management,
order history, confirmations and a full audit trail. In 2014, CME
Group partnered with the London Bullion Market Association and
Thomson Reuters to provide the over-the-counter spot silver market
with a transaction-based price-setting mechanism for the LBMA
Silver Price.
For more information on the CME Dairy futures and options or for
information on accessing the CME Dairy Spot Call on the CME Direct
Auction Platform, please visit www.cmegroup.com/spotcall.
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.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME,
Globex and Chicago Mercantile Exchange are trademarks of Chicago
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
Exchange, Inc. COMEX is a trademark of Commodity Exchange,
Inc. All other trademarks are the property of their
respective owners. Further information about CME Group
(NASDAQ: CME) and its products can be found at
www.cmegroup.com.
CME-G
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cme-group-to-transition-dairy-spot-call-to-cme-direct-auction-platform-300334076.html
SOURCE CME Group