LONDON, Oct. 31, 2017 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced it will expand its base metals offering with the
introduction of a new Copper Premium Grade A CIF Shanghai (Metal
Bulletin) futures contract to begin trading on November 20, 2017. Pending regulatory approvals,
the new contract will be available for trading on CME Globex and
for submission for clearing through CME ClearPort. It will be
listed with and subject to the rules and regulations of COMEX.
"Our new copper contract will provide the first, financial
settled exchange-traded futures product to enable customers and
market participants to hedge their exposure to the China copper premium," said Young-Jin Chang, Global Head of Metals Products,
CME Group. "We believe this new contract, which will complement CME
Group's existing physically delivered benchmark COMEX copper
futures, will become a reference price for copper traded in or
delivered to China."
Copper futures volumes have increased dramatically with more
than 115,000 contracts traded on average each day in September and
a record 338,000 contracts open interest on 16 August 2017.
"The creation of the new CME CIF Shanghai Copper Premium
contract based on Metal Bulletin's assessment is a timely
development and we plan to be an active participant in a contract
that should contribute liquidity and transparency to the underlying
physical market," said Paul
Wilkes, Head of Derivative Trading at Concord Resources.
"We welcome the creation of a liquid, transparent futures market
for China copper premium via this
CME Copper Premium CIF Shanghai futures contract based on Metal
Bulletin's assessment," said Nimrod
Hadani of JB Commodities Ltd. "We expect strong demand from
market participants across the value chain, and we look forward to
transacting in this new market for years to come."
The Copper Premium CIF Shanghai futures will be 25 metric tons
in size and will be financially settled against the Metal Bulletin
Copper Grade A Cathode CIF Shanghai assessment of copper spot price
transactions in China.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. Through its exchanges, CME Group offers 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. CME Group provides electronic trading globally on its
CME Globex platform. The company also offers clearing
and settlement services across asset classes for exchange-traded
and over-the-counter derivatives through CME Clearing. CME
Group's products and services ensure that businesses around the
world can effectively manage risk and achieve growth.
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