CME Group to Launch Grain Calendar Spread Options
May 04 2009 - 10:00AM
PR Newswire (US)
CHICAGO, May 4 /PRNewswire-FirstCall/ -- CME Group, the world's
largest and most diverse derivatives exchange, announced today the
launch of calendar spread options for corn, wheat, soybeans,
soybean meal and soybean oil futures, scheduled to be available for
trading on June 1. These contracts are listed with, and subject to,
the rules and regulations of the Chicago Board of Trade. Options on
calendar spreads will enable customers to mitigate the risk of
changing price differentials between successive futures contract
months when rolling from one futures contract month to another.
These new products will also provide grain merchandisers and
processors with an additional tool to manage risks related to grain
storage and purchase requirements. "Feedback from customers and the
agribusiness industry is that they would like another tool to
manage price risk on the price spread among the three nearby
contract months as well as the differential of the old crop and new
crop months," said Barry Goldblatt, CME Group Managing Director of
Commodity, Energy and Metals Products. The calendar spread options
will be available on CME Globex(R) and on the trading floors in the
corn, wheat, soybean, soybean meal, and soybean oil options pits.
Trading hours will be the same as for options on grain futures: on
CME Globex from 6:00 p.m. - 6:00 a.m. and 9:30 a.m. - 1:15 p.m.
Central time, Sunday through Friday, and on the trading floors 9:30
a.m. - 1:15 p.m. weekdays. The contracts will feature European
style exercise into the two respective futures contracts at
expiration. CME Group (http://www.cmegroup.com/) is the world's
largest and most diverse derivatives exchange. Building on the
heritage of CME, CBOT and NYMEX, CME Group serves the risk
management needs of customers around the globe. As an international
marketplace, CME Group brings buyers and sellers together on the
CME Globex electronic trading platform and on trading floors in
Chicago and New York. By acting as the buyer to every seller and
the seller to every buyer, CME Clearing virtually eliminates
counterparty credit risk. CME Clearing also offers financial
safeguards to help mitigate systemic risk, providing the security
and confidence market participants need to operate, invest and
grow. CME Group offers the widest range of benchmark products
available across all major asset classes, including futures and
options based on interest rates, equity indexes, foreign exchange,
energy, agricultural commodities, metals, and alternative
investment products such as weather and real estate. CME Group is
listed on NASDAQ under the symbol "CME." 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 and its products can be found at http://www.cmegroup.com/.
CME-G DATASOURCE: CME Group CONTACT: Media, Mary Haffenberg,
+1-312-930-3435, or Allan Schoenberg, +1-312-930-8189, , or
Investors, John Peschier, +1-312-930-8491, all of CME Group Web
Site: http://www.cme.com/
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