CHICAGO and SHANGHAI, Sept. 11,
2019 /PRNewswire/ -- CME Group, the world's leading and
most diverse derivatives marketplace, today announced the launch of
two new gold futures contracts on October
14, 2019, pending regulatory approvals.
Designed to connect global market participants to Chinese
physical gold markets, these two new financially-settled contracts
will be denominated in U.S. dollars and Renminbi – Shanghai Gold
(USD) futures and Shanghai Gold (CNH) futures, are based on the SGE
Shanghai Gold Benchmark PM Price. CME Group will be using the EBS
CNH Benchmark – 3pm Beijing for USD conversion. The contract sizes
will be 1 kilogram, with the USD contract priced in troy ounces and
the CNH contract priced in grams, and both contracts will be listed
on and subject to the rules and regulations of the COMEX.
Additionally, SGE, the world's largest physical gold exchange,
will launch new T+N contracts – NYAuTN contracts on October 14, 2019. NYAuTN contracts are linked to
COMEX Gold Futures Asia Spot Prices and denominated in CNY. The
contract sizes will be 100 grams.
The bilateral product-licensing agreement signed by CME Group
and SGE in May, and the launch of these new products, mark a key
milestone in promoting cross-market cooperation that will enhance
the global liquidity of CME Group's COMEX Gold futures by aligning
with the world's largest physical gold market in China through SGE. This will also
provide global investors access to China's physical gold market through CME
Shanghai Gold futures while also trading COMEX gold futures for
maximum capital and margin efficiencies.
"We applaud both CME Group and SGE for bringing together these
two very important gold markets. This is a great tool for the gold
industry and we look forward to supporting both initiatives," said
Zhen Mei, General Manager of Global
Markets Department, Bank of China.
"As one of the world's leading gold refiners and an approved
brand for both SGE and COMEX, this is an exciting opportunity for
Metalor," said Nicolas Carrera,
Global Treasurer of Metalor Technologies SA. "This solution
provides a unique hedging tool for China gold exposure."
"We are extremely pleased to collaborate with SGE on these
contracts that will bring market participants worldwide increased
access to Chinese gold markets," said Derek
Sammann, Senior Managing Director, Global Head of Commodity
and Options Products, CME Group. "The Shanghai Gold Benchmark
is widely-regarded as the Renminbi-denominated gold benchmark, and
the launch of these new gold contracts, combined with our ability
to offer both USD and CNH contracts utilizing EBS CNH Benchmark,
will create new opportunities for clients who want to access
China's physical gold prices
alongside our liquid COMEX Gold futures and options."
"The launch of these two new Shanghai Gold futures contracts by
CME Group marks a significant step in the internationalization of
the Shanghai Gold Benchmark," said Wang Zhenying, President of
SGE. "At the same time, our adoption of CME Group's COMEX
Gold Futures Asia reference prices for the settlement of SGE's T+N
contracts will provide our domestic market participants with the
benefit of the world's most recognized gold futures price as they
manage their exposure to the physical gold market, so it's a
win-win cooperation between SGE and CME."
For more information, visit
www.cmegroup.com/shanghaigold.
About CME Group
As the world's leading and most
diverse derivatives marketplace, CME Group (www.cmegroup.com)
enables clients to trade futures, options, cash and OTC markets,
optimize portfolios, and analyze data – empowering market
participants worldwide to efficiently manage risk and capture
opportunities. CME Group exchanges offer the widest range of global
benchmark products across all major asset classes based
on interest rates, equity indexes, foreign
exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing. With a range of pre- and post-trade products and
services underpinning the entire lifecycle of a trade, CME Group
also offers optimization and reconciliation services through
TriOptima, and trade processing services through Traiana.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are
trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB,
and Traiana, Inc., respectively. Dow Jones, Dow Jones
Industrial Average, S&P 500 and S&P are service and/or
trademarks of Dow Jones Trademark Holdings LLC, Standard &
Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as
the case may be, and have been licensed for use by Chicago
Mercantile Exchange Inc. All other trademarks are the
property of their respective owners.
About Shanghai Gold Exchange
As the world's largest exchange-traded physical gold platform,
Shanghai Gold Exchange (SGE) (www.sge.com.cn) is a national-level
financial market specialized in precious metals trading including
gold, silver and platinum. It has 269 members, 12,272 institutional
customers and 9.93 million individual customers. Among them, 79 are
international members and 81 are international customers. Its
domestic members represent 90% of China's gold production output and consumption
volume, as well as 95% of the country's refining capacity, while
its International members are all major international banks, gold
industry multinationals and investment institutions. With a
decade's efforts, SGE has built a multi-layer market system
comprising price matching, price asking, benchmark price, and gold
leasing in terms of trading modes, featuring integration of main
board and international board. SGE applies to the settlement
principle as centralization, netting, and multi-tiered. Currently,
there are 18 margin custodian banks for main board and 9 margin
custodian banks for international board. With 66 certified vaults
deployed across 36 cities, physical delivery through SGE is rather
convenient as allocation and distribution of gold ingots and gold
bars are centrally arranged by SGE. In April
19, 2016, SGE launched the "Shanghai Gold", the world's
first RMB-denominated benchmark price. The "Shanghai Gold" trading
mechanism is an important attempt of China's financial market in innovation and
opening-up, and global integration. It also provided a
well-functioned tool for risk management and innovation for gold
market participants, while accelerated the process of the
internationalization of China's
gold market. With 16 years' development, SGE has gradually become
the core and hub of China's gold
market, as well as an important global trading market for precious
metals in terms of gold, silver, and platinum. Since 2007, SGE has
been the world largest exchanged-traded physical gold platform for
12 consecutive years.
CME-G
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SOURCE CME Group