CME Group Announces the Launch of Chinese Steel Rebar Swap Futures Based on Mysteel Index

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Sep 27, 2012, 06:00 ET

SHANGHAI and LONDON, Sept. 27, 2012 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace today announced the launch of Chinese Steel Rebar HRB400 (Mysteel) Swap Futures to begin trading on October 15, subject to regulatory review. This product, which will be listed with, and subject to the rules and regulations of NYMEX, will be the first product listed by a CME Group exchange based on Mysteel's market-leading price data services.

"Working closely with Mysteel, our new rebar contract allows customers who have exposure to the Chinese construction and rebar industries to manage their price risk by using the most relevant price data," said Harriet Hunnable, CME Group Managing Director, Metals Products. "There is demand from industry participants to provide them with tools to help reduce the impact of price volatility throughout the steel supply chain. This product is designed to enable our regional customers to manage rebar price volatility and eliminate counterparty credit risk through a flexible, centrally cleared swap futures product."

In January, CME Group and Mysteel, China's leading provider of ferrous price and indexing services announced an agreement to develop risk management products for the ferrous industry. Mysteel is widely used as the benchmark settlement price index for steel mills and traders, traders and end-users.

"Through our partnership with CME Group and the distribution on its CME Globex electronic trading platform, we are able to quickly reach global market participants," said Zhu Jun Hong, Chairman of Mysteel. "We will continue to work together to identify new products and services that will meet the needs of Chinese ferrous industry participants and help them to manage their risk."

Rebar HRB400 is used primarily by the construction industry to reinforce concrete, and is defined as a ribbed bar of steel of 20mm diameter under the Production Statistical Indicator System of China's Steel Industry. These swap futures from CME Group will be equal to 100 metric tons, will be denominated in U.S. Dollars and will be offered for trading on the NYMEX trading floor and for clearing through CME ClearPort.

CME Group's range of risk management tools for the ferrous industry have broken new ground in producing a comprehensive suite of products covering multiple sources of volatility across the ferrous supply chain. This has become known as the 'virtual steel mill'.

For more information visit www.cmegroup.com/ferrous.

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 world's leading central counterparty clearing providers, which offers 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.

About Mysteel

Mysteel has been assessing prices in the domestic Chinese metals market since 2000 and has built up a reputation for producing fair and transparent price assessments. Mysteel is the leader in China's steel e-commerce sector, boasting established strategic partnerships with more than 20 metallurgic bodies in China. The company has more than 600,000 registered members and information-collecting systems covering over sixty cities across China.

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