LONDON, Sept. 30 /PRNewswire/ -- CME Group, the world's
leading and most diverse derivatives marketplace, today announced
the launch of trading and clearing services for iron ore 62% Fe,
CFR China (Platts) swap futures, reflecting changing dynamics in
the global ferrous industry. Trading will be available on the
New York trading floor. Clearing
services will be available through CME ClearPort®, a set of
flexible clearing services open to over-the-counter (OTC) market
participants to substantially mitigate counterparty risk and
provide neutral settlement prices across asset classes. Trading and
clearing are scheduled to begin on October
17 for trade date October 18. This contract will be
listed by NYMEX and subject to the rules and regulations of
NYMEX.
"The ferrous metals industry is one of the largest global
commodity markets," said Joe Raia,
CME Group managing director of energy and metals products and
services. "This contract will complement our existing suite
of ferrous, dry freight and international coal futures, and
advances our goal of building a complete marketplace for seaborne
dry freight products, providing risk management tools across the
full ferrous production cycle. In addition, this contract
will afford our customers the benefits of capital efficiencies by
cross margining against other related products."
"We are committed to bringing greater transparency and
efficiency to the global iron ore market through our physical price
assessments and information services, and we welcome the futures
industry's recognition of the role we play in the price discovery
process in the markets we cover," said Gerald Bueshel, Platts
director of global licensing. "This brings the total number of CME
Group contracts settled on market price assessments published by
Platts to more than 400."
Iron ore is a key raw material used in the production of crude
steel. Although abundant and widely extracted, growing global
demand, particularly from China,
has resulted in growing price volatility.
The commodity code for the contract will be PIO. It will
be listed for 24 consecutive months, with November 2010 as the first listed contract month.
The contract will be 1,000 dry metric tons in size, with a
minimum price fluctuation of $0.01
per tick.
About Platts
Platts, a division of The McGraw-Hill Companies (NYSE: MHP), is
a leading global provider of energy and metals information. With a
century of business experience, Platts serves customers across more
than 150 countries. An independent provider, Platts serves the oil,
natural gas, electricity, emissions, nuclear power, coal,
petrochemical, shipping, and metals markets from 17 offices
worldwide. Platts' real-time news, pricing, analytical services and
conferences help markets operate with transparency and efficiency.
Additional information is available at http://www.platts.com.
About CME Group
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 commodities, metals, weather
and real estate. CME Group brings buyers and sellers
together through its CME Globex® electronic trading platform and
its trading facilities in New York
and Chicago. CME Group also operates CME Clearing, one of the
largest central counterparty clearing services in the world, which
provides clearing and settlement services for exchange-traded
contracts, as well as for over-the-counter derivatives transactions
through CME ClearPort®. These products and services
ensure that businesses everywhere can substantially mitigate
counterparty credit risk in both listed and over-the-counter
derivatives markets.
The Globe logo, CME, Chicago Mercantile Exchange, CME Group,
Globex, E-mini and CME ClearPort are trademarks of Chicago
Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the
Board of Trade of the City of Chicago. NYMEX and New York
Mercantile Exchange are 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
SOURCE CME Group
Copyright . 30 PR Newswire