CME Group Expands Base Metals Offering with New Aluminium European Premium Futures

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Sep 04, 2015, 07:00 ET

LONDON, Sept. 4, 2015 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced it will expand its base metals offering with the introduction of a new Aluminium European Premium Duty-Unpaid (Metal Bulletin) futures contract to begin trading on 21 September, 2015. Pending relevant regulatory review periods, the new contract will be available for trading on CME Globex and for submission for clearing through CME ClearPort, and will be listed with and subject to the rules and regulations of COMEX.

"Our new contract will be the first viable exchange-traded futures product to enable customers and market participants to hedge their exposure to the European aluminium premium," said Young-Jin Chang, CME Group Senior Director of Metals Products. "This is a continuation of our commitment to engage with customers and market participants in the aluminium industry around the globe. We continue to work closely with the industry to provide them with innovative new solutions to manage aluminium premium volatility, which has reached record levels during the last three years."

These new contracts will complement CME Group's existing suite of aluminium risk management tools, including its Aluminum MW U.S. Transaction Premium futures and physically delivered Aluminum futures. Industry participation in the Aluminum Midwest Premium contract has steadily increased, trading the equivalent of more than 650,000 metric tons since their launch in April 2012 and reaching a record 19,335 contracts open interest on 1 September 2015. Aluminum futures, which were introduced in May of last year, serve as a reference price for the North American aluminium industry and allow participants to better manage their price risk.

The Aluminium European Premium futures contract will be 25 metric tons in size and will be financially settled against the Metal Bulletin assessment of aluminium spot price transactions in Europe.

For more information on CME Group's metals products, please visit www.cmegroup.com/metals.

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. KCBOT, KCBT and Kansas City Board of Trade are trademarks of The Board of Trade of Kansas City, Missouri, 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