Frequently Asked Questions Black Sea Corn Financially Settled (Platts) Futures

1. What is the underlying reference price?

The Black Sea Corn Financially Settled (Platts) Futures contracts are based on the “Ukrainian Corn Fob Black Sea” price assessment published by Platts.

2. What is the Platts Black Sea Wheat FOB Russia assessment?

Price assessments reflect corn with a maximum moisture content of 14.5%, maximum broken kernels of 5%, maximum damage of 5%, and maximum foreign matter content of 2%.

The assessments reflect reflect typical export cargo sizes normalized to reflect parcels of 25,000 metric tonnes, FOB Ukrainian ports capable of accepting Panamax vessels (Odessa, Yuzhny and Chornomorsk). Platts may also include, for assessment purposes, other Black Sea ports or CFR prices from relevant destinations, normalized to so called Ukrainian Panamax ports as basis, using prevailing spot freight rates.

3. How are the final settlement prices of the futures contracts determined?

CME Group are making available two Black Sea Corn contracts that cover different settlement period: • Black Sea Corn Financially Settled (Platts) Futures. Basis a Final Settlement Price equal to the arithmetic average of the Ukrainian Corn Fob Black Sea price assessments published by Platts for each day of the full calendar month period, rounded to the nearest $0.01.

Black Sea Corn Financially Settled (Platts) Half Month Futures. Basis a Final Settlement Price equal to the arithmetic average of the Ukrainian Corn Fob Black Sea price assessments published by Platts for each day of the half month period, rounded to the nearest $0.01.

4. Are there price limits?

Yes, there are price limits. These are set at US$30 on the first trading day.

5. The futures contract is available on ClearPort for submission for clearing. How does it work?

Subject to certain requirements met, such as minimum size, the futures contract can be privately negotiated as block trades and registered through ClearPort for clearing.

6. What are the requirements for block trade?

There are minimum quantity and reporting time requirements. The minimum block size is 5 lots, and trades need to be reported within 15 minutes of execution.

7. What are the hours for trade entry on CME ClearPort for clearing?

Trades may be entered on CME ClearPort Sunday – Friday from 5:00 p.m. to 4:00 p.m. CT, with a 60-minute pause each day from 4:00 p.m. to 5:00 p.m. CT.

8. Are trades executed at 1.30 pm US Central Time for today or tomorrow’s trade?

All trades executed through 4:00 p.m. U.S. Central Time will be considered today’s trade.

9. What are the Position Limits?

The Black Sea Corn Financially Settled (Platts) Futures Contracts will have a combined Spot Month Limit of 600 contracts. Single Month Accountability Level and All Month Accountability Level are both set at 3,000 contracts.

10. What is the listing schedule?

The Black Sea Corn Financially Settled (Platts) Futures are listed over 12 consecutive months.

11. I am a bona-fide hedger and I need to exceed Position Limits. Can I apply for a hedge exemption?

Yes, you can apply for a hedge exemption. Market participants may be eligible to receive an exemption from Position Limits in accordance with Rule 559 based on having bona fide hedging positions (as defined by CFTC Regulation §1.3(z)(1)), risk management positions and/or arbitrage and spread positions. To obtain an exemption application or for further information on the exemption application process, please contact us at Hedgeprogram@cmegroup.com.

12. How do I start trading this contract?

There are various ways you can begin trading these contracts depending on your situation, but this is the simplest and most straightforward process. Contact blacksea@cmegroup.com or any of the Inter Dealer Brokers (IDBs) that service this market and they will guide you along.

Step 1:Register on CME Clearport Contact: blacksea@cmegroup.com
Step 2: Appoint an Inter Dealer Broker (IDB) that services this market
Step 3: Request your CME Group Clearing Firm to permission your chosen IDB for trade submission

Contact your Clearing Firm or for more help, contact: blacksea@cmegroup.com

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