CME Group Announced Launch of South American Short-Dated New Crop Soybeans Options

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Oct 08, 2015, 03:30 ET

CHICAGO, Oct. 8, 2015 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced the launch of Short-Dated New Crop options based on the May CBOT Soybean futures contract reflecting the South American harvest. These new contracts will expand the existing suite of Short-Dated New Crop options offered to customers and will be available for trading as of November 2, 2015, pending all relevant regulatory review periods.

"Short-Dated New Crop options on our global benchmark CBOT grain and oilseeds have been successful because they offer our customers a flexible and cost-effective tool to manage new crop price risk," said Tim Andriesen, CME Group's Managing Director of Agricultural Commodities. "These short-dated options will benefit producers in Brazil, Argentina, Uruguay and Paraguay seeking to more cost effectively hedge grain prices timed to their crop cycle, while providing global grain traders and customers additional trading and arbitrage opportunities. We're offering these new options to better meet the needs of the growing South American producer base."

South American Short-Dated New Crop Soybean options will match the new crop soybean cycle in the southern hemisphere. These contracts will be options on the underlying May CBOT Soybean futures with earlier expiring contract months being listed – July, September, November, January and March.

These contracts will be available for trading electronically via CME Globex, open-outcry trade in the Soybean options pit and submission for clearing through CME ClearPort. South American Short-Dated New Crop Soybean options will be listed by and subject to the rules of CBOT.

Since their introduction in June 2012, Short-Dated New Crop options have traded more than 2.3 million contracts, with Soybeans accounting for 19 percent of that trading volume. During 2015-to-date, combined short-dated options averaged more than 14,000 contracts traded each day, including 750 Soybean contracts per day. Short-Dated New Crop options reached a record 116,579 contracts traded on June 26, 2015.

For more information on Short-Dated New Crop Options visit www.cmegroup.com/sdnc.

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, its trading facilities in New York and Chicago, and through its London-based CME Europe derivatives exchange. CME Group also operates one of the world's leading central counterparty clearing providers through CME Clearing and CME Clearing Europe, which offer clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.

CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered 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.

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SOURCE CME Group