CME Plans to Launch New European Wheat Futures Contract
June 20 2016 - 10:13AM
Dow Jones News
LONDON--Futures exchange operator CME Group Monday said it plans
to start a new European wheat futures contract later this year, a
move that will put the company in competition with Euronext NV.
Trading in the new euro-denominated contract is scheduled to
begin on Sept. 12, pending regulatory review, CME said in a
statement.
Euronext's current benchmark wheat futures contract, known as
Matif, specifies that traders who want to take delivery of a
physical shipment of wheat when a futures contract expires can only
do so at one of three silos in northern France.
CME, which runs the global benchmark Chicago-listed wheat
contract and first announced its intention to launch a European
contract in June 2014, said its new contract will allow delivery to
take place at a network of warehouses in France's major
wheat-growing areas. It said 12 warehouses have applied to be
approved as delivery warehouses.
"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," the company said.
The first contract to be traded will have a delivery month--when
the contract expires--of December 2016, while contracts with seven
further delivery months will also be listed, CME said.
Louis Dreyfus Group, an agricultural commodities trading group,
said it was involved in developing the new contract.
Write to Ed Ballard at ed.ballard@wsj.com
(END) Dow Jones Newswires
June 20, 2016 09:58 ET (13:58 GMT)
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