LONDON and NEW YORK, Nov. 1,
2016 /PRNewswire/ -- CME Group, the world's
leading and most diverse derivatives marketplace, today announced
it will offer a new Precious Metals Spot Spread to enable customers
to effectively manage spot-futures spread price risk. The Spot
Spread will be facilitated by the introduction of London Spot Gold
futures and London Spot Silver futures contracts, and will provide
traders with transparent, real-time information on the price
relationship between COMEX futures and London spot markets. These two new contracts
will be listed on COMEX and will begin trading on Monday, January 9, 2017, pending regulatory
review.
"The introduction of the Spot Spread will enable customers to
efficiently and electronically manage the risk they have between
our deeply liquid COMEX Gold and Silver futures and the
London spot markets," said
Miguel Vias, CME Group Head of
Precious Metals. "Our new contracts will provide traders with
streamlined access to the London
spot market via the safety and transparency of cleared,
exchange-traded futures contracts. We believe the Spot Spread has
the potential to create an even stronger link between the world's
two largest pools of precious metals liquidity, namely benchmark
COMEX Gold and Silver futures and the London spot markets."
This new inter-commodity spread trade market will be established
on CME Globex between the London Spot Gold and Silver futures
contracts and the active month of the COMEX Gold and Silver
futures. The Precious Metals Spot Spread will enable participants
to transfer risk in one simple, cost-effective transaction executed
electronically on CME Globex and cleared by CME Clearing.
The new contracts behind the Spot Spread will expand CME Group's
suite of COMEX precious metals contracts, including the global
benchmark Gold and Silver futures contracts, and provide customers
with exposure to the London spot
market by creating two-day futures contracts that will result in
delivery of unallocated London
gold or silver.
Both London Spot Gold futures and London Spot Silver futures
will be physically settled and listed for normal trading on CME
Globex and for submission of block trades and exchange for related
positions (EFRP) via CME ClearPort. London Spot Gold futures
contract will represent 100 troy ounces of unallocated gold, and
each London Spot Silver futures contract will be equivalent to
5,000 troy ounces of unallocated silver.
For more information about these new contracts, visit
www.cmegroup.com/spotspread.
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
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SOURCE CME Group