CHICAGO, Feb. 6, 2020 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced the launch of North European Hot-Rolled Coil Steel
(Argus) Futures, to begin trading on March
9, 2020, pending all relevant regulatory review periods.
"Given the high level of uncertainty and increased regional
volatility in steel markets, we have seen a growing demand for risk
management tools from customers throughout the steel supply chain,"
said Young-Jin Chang, Global Head of
Metals Products, CME Group. "As we continue to experience strong
growth across our expanding ferrous product suite, we are pleased
to provide steel mills, service centers and other market
participants a new way to price and manage their exposure to
changes in regional steel prices."
"This new hedging tool for the North European HRC market is very
timely given the increase in volatility of European steel prices,"
said Lee Kirk, managing director of
Cargill's metals business. "This contract benefits the ferrous
industry as a whole and provides us an opportunity to work and
create value with our customers across Europe so that they can focus on what really
matters."
North European Hot-Rolled Coil Steel (Argus) Futures will be
financially settled based on a price assessment published by Argus
Media each business day of the contract month. The futures will be
quoted in Euros per metric ton and have a contract size of 20
metric tons. The first listed month will be the March 2020 contract, with a further 11
consecutive months available for trading – out to February 2021.
"We are delighted that CME Group has chosen Argus as the
settlement price for its HRC North European contract. As a leading
provider of pricing for hot-rolled coil steel, Argus recognizes the
importance of bringing transparency to a market that is critical
for industries ranging from automotive to drum manufacturing," said
Adrian Binks, chairman and chief
executive of Argus Media.
Ferrous metals futures and options trading volumes have
increased more than 35 percent during 2019 reaching a new record
volume of 251,999 contracts traded. Open interest reached 22,320
contracts at year-end 2019.
The new futures contract will be available for trading on CME
Globex and for submission for clearing via CME ClearPort, and will
be subject to the rules and regulations of COMEX. For more
information on CME Group's ferrous metals product suite, please
visit: www.cmegroup.com/trading/metals/ferrous
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) enables clients to trade futures,
options, cash and OTC markets, optimize portfolios, and analyze
data – empowering market participants worldwide to efficiently
manage risk and capture opportunities. CME Group exchanges offer
the widest range of global benchmark products across all major
asset classes based on interest rates, equity
indexes, foreign exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing. With a range of pre- and post-trade products and
services underpinning the entire lifecycle of a trade, CME Group
also offers optimization and reconciliation services through
TriOptima, and trade processing services through Traiana.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are
trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB,
and Traiana, Inc., respectively. Dow Jones, Dow Jones
Industrial Average, S&P 500 and S&P are service and/or
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property of their respective owners.
CME-G
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SOURCE CME Group