LONDON, June 20, 2016 /PRNewswire/
-- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced the launch of physically delivered European
Union (EU) Wheat futures and options
on futures contracts to begin
trading on 12 September 2016, pending
all relevant regulatory review periods. These contracts will be
listed subject to the rules and regulations of the Chicago Board of Trade
(CBOT).
The new EU Wheat futures and options contracts are
the result of in-depth consultation with customers and industry
participants who want risk management tools that better reflect
physical storage practices in the EU. EU Wheat futures and options
will be denominated in euros, priced relative to the Rouen market,
and will enable users to take delivery of wheat at
exchange-approved warehouses in key locations across France or hold onto wheat certificates for
delivery at a future date.
"Our Soft Red Winter and Hard Red Winter Wheat
futures are the global benchmarks of the physical grain industry,
facilitating price discovery and a robust spread market for
our customers' hedging needs around the globe," said
Tim Andriesen, Managing Director,
Agricultural Products, CME Group. "The addition of these new EU
Wheat contracts to our existing suite of Wheat futures and options
further positions CME Group and our CME Globex trading platform as
the global destination for wheat trading and risk
management."
EU Wheat futures will combine CBOT's warehouse
delivery mechanisms with European trading practices to offer an
efficient hedging tool to market participants.
At the same time, wheat traders will benefit from
arbitrage opportunities and margin offsets between EU Wheat futures
and options and the existing suite of Wheat futures and options.
Global wheat participants already have access to futures and
options on all three North American wheat benchmarks through
the CME Globex electronic
trading platform.
"We were requested to be actively involved in the
development of these contract specifications, and believe they will
be well aligned with our hedging strategies," said Steve Campbell, Head of Grains for the
North America region at Louis
Dreyfus Company. "As a leading global merchant and processor of
agricultural goods, we closely monitor international agricultural
markets to effectively manage price volatility throughout the
supply chain. CME Group's new EU Wheat contracts, together with the
Chicago Soft Red Winter and KC Hard Red Winter Wheat products, will
be additional valuable tools to enable liquidity, helping us to
manage global wheat price volatility better across our
operations."
Delivery of wheat against the contract will take
place via the issuance of a warehouse certificate linked to
approved warehouses located in the major wheat producing areas of
France. Firms receiving
certificates will have the flexibility to either
re-deliver the certificates against futures; give
notice of load-out of the physical wheat or hold the certificate
for future load-out from the issuing warehouse in return for paying
administrative fees. This will encourage the creation of a forward
curve for EU wheat.
Each contract will represent 50 metric tonnes of
physical EU wheat with quality specifications set at a minimum of
10.5 percent protein and 170 hagberg. The first listed month will
be the December 2016 delivery month
with a further seven delivery months also being made available for
trading.
EU Wheat futures and options contracts will be
available for trading electronically via CME Globex
Monday through Friday between 10:30
a.m. and 6:35 p.m. Paris
time. EU Wheat options will also be available for trading on
the company's Chicago trading
floor from 8:30 a.m. to 11:35 a.m.
Chicago time.
At present, 12 warehouses
have applied for approval for the delivery of physical EU
wheat against the contract.
CME Group will be hosting two conference calls this
afternoon for the media, in both English and French, at
14.00pm BST and 14.30am BST respectively, featuring
representatives from our Agricultural Products team. The dial-in
details are as follows:
14.00pm BST: English
language call
Conference ID:
|
5955407
|
International dial-in: +1 913 312
0387
|
France: +33 1 70 71 29
52
|
Germany: +49 69 3339
9503
|
United Kingdom: +44 20 8150
0795
|
14.30pm BST: French
language call
Conference ID:
|
4828373
|
International dial-in: +1 913 661
9178
|
France: +33 1 70 71 29
52
|
Germany: +49 69 3339
9503
|
United Kingdom: +44 20 8150
0795
|
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,
the Chicago Board of
Trade, KCBOT, KCBT and Kansas City 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.
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SOURCE CME Group