CME Group to Launch Black Sea Sunflower Oil Financially Settled (Platts) Futures

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Jul 25, 2019, 08:37 ET

LONDON, July 25, 2019 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced the launch of Black Sea Sunflower Oil Financially Settled (Platts) futures (based on Sunflower Oil FOB Black Sea Ukraine), to begin trading on August 26, 2019, pending all relevant regulatory review periods.

The contract is being introduced after a wide-ranging consultation with the industry and in response to client demand for risk management tools to manage price volatility in the global sunflower oil market. It follows the successful launch of CME Group's financially settled Black Sea Wheat and Black Sea Corn contracts, which have traded over 300,000 contracts since launch with a combined open interest of 40,000 contracts.

"CME Group edible oil futures have been an integral part of the physical oilseed industry, facilitating price discovery and risk transfer for merchants, crushers, processors, traders and industrial consumers around the globe," said Tim Andriesen, Managing Director, Agricultural Products, CME Group. "The addition of Black Sea Sunflower Oil to our Soybean Oil and Malaysian Crude Palm Oil futures contracts makes CME the global destination of choice for customers hedging and risk management needs in the edible oil markets."

Black Sea Sunflower Oil Financially Settled (Platts) futures will be financially settled based on the "Sunflower Oil FOB Black Sea Ukraine" price assessment published by S&P Global Platts each business day. The futures will be quoted in US$ and cents per tonne and have a contract size of 25 metric tonnes. The first listed month will be the November 2019 contract, with a further 11 consecutive months available for trading - out to October 2020.

Ian Dudden, Global Content Director, Metals and Agriculture at S&P Global Platts said, "We are pleased that the CME Group and market participants recognise the important role our independent Sunflower Oil price assessment plays in creating price transparency, which in turn provides opportunities for the provision of risk management tools that bring greater efficiency to the global agriculture markets."

The new futures contract will be available for trading on CME Globex and CME ClearPort, and will be listed with and subject to the rules and regulation of CBOT. For more information on CME Group's Black Sea products, including Black Sea Sunflower Oil Financially Settled (Platts) futures, please visit: www.cmegroup.com/blacksea.

For more information about S&P Global Platts agriculture price assessments, please click here.

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.

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