LONDON, April 5, 2011 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, has
announced today that it is expanding its suite of over the counter
products to meet the risk management needs of the global steel
industry. On Sunday, April 17, for a
trade date of April 18, three
financially settled steel contracts – Heavy Melting Scrap (HMS)
80/20 Ferrous Scrap; CFR Turkey (Platts) Swap Futures; Steel
Billet, FOB Black Sea (Platts) Swap Futures; and European Hot
Rolled Coil, Ex-Works Ruhr Germany (Platts) Swap Futures – will be
listed on CME ClearPort and the New
York trading floor. These contracts are listed by and
subject to the rules of NYMEX.
"We continue to expand our counterparty risk services for a
number of new ferrous metal contracts in order to meet the risk
management needs of our existing and potential clients in
Europe, the Middle East and Asia," said Harriet
Hunnable, Managing Director, Metals for CME Group. "By
working closely with our customers this past year, we believe
helping support their needs across the entire supply chain of
products in the steel industry will allow them more flexibility in
managing their risk exposure."
"This is another positive step in building the structure
required for price risk management tools to serve the steel value
chain," Francis Browne, Director
Platts Metals Group. "We are particularly pleased that CME Group
has chosen daily price discovery methodology to settle these
contracts, confirming that steel markets trade and find value
daily."
Details on the three new products include the following:
- HMS 80/20 Ferrous Scrap, CFR Turkey (Platts) Swap Futures:
These products are based on shipping terms to Turkey, including cost and freight (CFR). One
contract equals 50 metric tons and is priced in US dollars. HMS
ferrous scrap is recyclable material that can be re-melted into
liquid steel. The material can then be cast into billets, which can
be rolled into a range of finished products.
- Steel Billet, FOB Black Sea (Platts) Swap Futures: These
products are based on material loaded for export from Black Sea
ports free on board (FOB). One contract equals 100 metric tons and
is priced in US dollars. Billet is an intermediate long steel
product which is processed, re-rolled, into downstream value added
steel products of rebar, wire rod and other structural steels used
primarily in the construction industry.
- European Hot Rolled Coil, Ex-Works Ruhr Germany (Platts) Swap
Futures: One contract equals 50 metric tons and is priced in euros.
Hot rolled coil is a finished flat steel product used in a wide
variety of industries including; automotive, chemical, oil and
white goods industries.
These contracts help build on CME Group's existing suite of
products, which include US Midwest HR Steel and Iron Ore Swaps and
Options.
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 world's leading central
counterparty clearing provider in the world, which offers 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.
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CME-G
SOURCE CME Group