CHICAGO and MINNEAPOLIS, March 1,
2012 /PRNewswire/ -- CME Group, the world's leading and
most diverse derivatives marketplace and MGEX, a Designated
Contract Market and Derivatives Clearing Organization, today
announced the launch of MGEX-CBOT Wheat Spread Options to begin
trading on March 26. These contracts
are listed with, and subject to, the rules and regulations of
CBOT.
MGEX-CBOT Wheat Spread Options are unique hedging tools based on
the price differentials between hard red spring wheat futures
listed on the Minneapolis Grain Exchange, Inc. (MGEX) and soft red
winter wheat futures on the Chicago Board of Trade (CBOT), which are the
result of fundamental supply and demand factors and varying protein
levels between these two distinct classes of wheat.
"For years, market participants have used spread trading
strategies to express a point of view about the price differences
in these distinct varieties of wheat," said Tim Andriesen, Managing Director, Agricultural
Commodities and Alternative Investments, CME Group. "These
cost-effective and unique spread options from CME Group will enable
global wheat industry participants to access our deep and liquid
wheat markets to manage the risk associated with the price
differentials inherent between these classes of wheat."
This adds to CME Group's already broad wheat market offering.
Today, customers can access underlying CBOT, MGEX and Kansas City (KCBOT) wheat markets through the
CME Globex electronic trading platform.
"MGEX is pleased to partner with CME Group in offering
market participants another way to access MGEX's high protein Hard
Red Spring Wheat (HRSW) contract," Eric J.
Delain, Corporate Counsel, MGEX said. "We expect these
spread options will be a valuable risk management tool as a
compliment to the MGEX HRSW futures contract."
Three MGEX-CBOT Wheat Spread options will be listed for both
open-outcry and electronic trading:
- MGEX July – CBOT July
- MGEX September – CBOT July
- MGEX December – CBOT December
For more information about CBOT Wheat Futures and Options,
please visit
www.cmegroup.com/trading/agricultural/cbot-wheat-futures.html.
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.
About MGEX
MGEX is a Designated Contract Market and Derivatives Clearing
Organization based in Minneapolis,
MN and is the world's largest market for Hard Red Spring
Wheat (HRSW) futures and options. Established in 1881, MGEX is also
the only market for National Corn Index (NCI), National Soybean
Index (NSI), Hard Red Winter Wheat Index (HRWI), Hard Red Spring
Wheat Index (HRSI), and Soft Red Winter Wheat Index (SRWI) futures
and options. To learn more about MGEX visit www.mgex.com.
CME-G
SOURCE CME Group