CME Group Announces the Launch of Clearing Services for Iron Ore (Platts) Swap Futures
By Cme Group, PRNEWednesday, September 29, 2010
LONDON, September 30, 2010 - CME Group, the world's leading and most diverse derivatives marketplace,
today announced the launch of trading and clearing services for iron ore 62%
Fe, CFR China (Platts) swap futures, reflecting changing dynamics in the
global ferrous industry. Trading will be available on the New York trading
floor. Clearing services will be available through CME ClearPort(R), a set of
flexible clearing services open to over-the-counter (OTC) market participants
to substantially mitigate counterparty risk and provide neutral settlement
prices across asset classes. Trading and clearing are scheduled to begin on
October 17 for trade date October 18. This contract will be listed by NYMEX
and subject to the rules and regulations of NYMEX.
"The ferrous metals industry is one of the largest global commodity
markets," said Joe Raia, CME Group managing director of energy and metals
products and services. "This contract will complement our existing suite of
ferrous, dry freight and international coal futures, and advances our goal of
building a complete marketplace for seaborne dry freight products, providing
risk management tools across the full ferrous production cycle. In addition,
this contract will afford our customers the benefits of capital efficiencies
by cross margining against other related products."
"We are committed to bringing greater transparency and efficiency to the
global iron ore market through our physical price assessments and information
services, and we welcome the futures industry's recognition of the role we
play in the price discovery process in the markets we cover," said Gerald
Bueshel, Platts director of global licensing. "This brings the total number
of CME Group contracts settled on market price assessments published by
Platts to more than 400."
Iron ore is a key raw material used in the production of crude steel.
Although abundant and widely extracted, growing global demand, particularly
from China, has resulted in growing price volatility.
The commodity code for the contract will be PIO. It will be listed for 24
consecutive months, with November 2010 as the first listed contract month.
The contract will be 1,000 dry metric tons in size, with a minimum price
fluctuation of US$0.01 per tick.
About Platts
Platts, a division of The McGraw-Hill Companies (NYSE: MHP), is a leading
global provider of energy and metals information. With a century of business
experience, Platts serves customers across more than 150 countries. An
independent provider, Platts serves the oil, natural gas, electricity,
emissions, nuclear power, coal, petrochemical, shipping, and metals markets
from 17 offices worldwide. Platts' real-time news, pricing, analytical
services and conferences help markets operate with transparency and
efficiency. Additional information is available at www.platts.com.
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(R) electronic trading platform and its trading
facilities in New York and Chicago. CME Group also operates CME Clearing, one
of the largest central counterparty clearing services in the world, which
provides clearing and settlement services for exchange-traded contracts, as
well as for over-the-counter derivatives transactions through CME
ClearPort(R). These products and services ensure that businesses everywhere
can substantially mitigate counterparty credit risk in both listed and
over-the-counter derivatives markets.
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 (Nasdaq: CME) and its products can be
found at www.cmegroup.com.
CME-G
Media, Jeremy Hughes, +44-207-196-7112 or Allan Schoenberg, +1-312-930-8189, news at cmegroup.com, or Investors, John Peschier, +1-312-930-8491, all of CME Group; or Platts Media, Global, Kathleen Tanzy, +1-212-904-2860, Kathleen_tanzy at platts.com, Europe, Shiona Ramage, +44-207-176-6153
Tags: CME Group, London, September 30, United Kingdom