E-micro Gold Futures (MGC) and 1,000-oz. Silver Futures (SIL)

E-micro Gold futures (MGC) and 1,000-oz. Silver futures (SIL) offer a 10:1 offset with the 100-oz. Gold futures contract and a 5:1 offset with the 5,000-oz. Silver futures contract, respectively.

These contracts are tailored to meet the demands of the active individual investor looking for the opportunity to trade physical gold and silver in smaller increments or those seeking a less-expensive alternative to trading the largest, most liquid Gold (GC) and Silver (SI) futures in the world.

Benefits

  • Conveniently sized/tailored to the individual investor (1/10 GC futures; 1/5 of SI futures)
  • Backed by the safety and security of CME Clearing
  • Flexible, affording more time to make strategic market decisions; limiting risk of market timing
  • Affordable, requiring lower initial capital outlay, with lower margin and exchange fees
  • Part of our micro suite of products, facilitating cross-margining opportunities
  • Offers a better hedge for delta and gamma positions
  • Accessible virtually around the clock on CME Globex and available to clear through CME ClearPort

Monthly Volume and OI


Contract Specs

Product E-micro Gold Futures
Commodity Code MGC
Rulebook Chapter 120
Contract Size 10 troy ounces
Listed Contracts Any February, April, June, August, October, and December falling within a 24-month period for which a 100 Troy Ounce Gold Futures contract is listed
Termination of Trading Third last business day of the delivery month
Minimum Price Fluctuation $0.10 per troy ounce
Price Quotation US dollars and cents per troy ounce
Product 1,000-oz. Silver Futures
Commodity Code SIL
Rulebook Chapter 121
Contract Size 1,000 troy ounces
Listed Contracts Any January, March, May, July, September, and December falling within a 12-month period
Termination of Trading Third last business day of the delivery month
Minimum Price Fluctuation Outrights: $0.01 per troy ounce; Spreads: $0.005 per troy ounce; Settlement: $0.001 per troy ounce
Price Quotation Cents per troy ounce; prices disseminated in US dollars and cents per troy ounce

Salient Features

Settlement and Margin

E-micro Gold futures will have identical settlement prices each day to Gold futures (GC). 1,000-oz Silver futures will have identical settlement prices each day to Silver futures (SI).

Original margin for the E-micro Gold futures will be 1/10 margin rate of Gold futures. Original margin for 1,000-oz. Silver futures will be 1/5 margin rate of the Silver futures. There will be 100% margin offsets between 10 E-micro Gold futures and one (1) Gold futures, if one of the contracts is long and the other contract is short, for the same month. If not

for the same month, then spread margining will be in effect. There will be 100% margin offsets between five 1,000-oz. Silver futures and one (1) Silver futures contract, if one of the contracts is long and the other contract is short, for the same month. If not for the same month, then spread margining will be in effect.

ACE stands for “Accumulated Certificate of Exchange,” created by CME Clearing. For E-micro Gold futures, ACE represents a 10% ownership in one 100-troy oz. COMEX Gold warrant; For 1,000-oz. Silver Futures, ACE represents a 20% ownership in one 5,000-troy oz. COMEX Silver warrant. ACEs are backed by physical gold or silver held in an Exchange approved depository.

When 10 ACEs for Gold are accumulated, they may be redeemed for one 100-troy oz.COMEX Gold warrant. Similarly for Silver, when five ACEs are accumulated, they may be redeemed for one 5,000-troy ounce COMEX Silver warrant.


ACE Conversion

Example: Converting ACEs to a COMEX Gold warrant:

An individual who is long an E-micro Gold futures contract  may opt to take delivery of that futures contract, and will receive an ACE at time of delivery. At any time, thereafter, when the individual has accumulated 10 ACEs, he may  convert them into a COMEX Gold warrant. While an individual is holding an ACE, he will be responsible for storage on the amount of gold represented by the ACE. Remember, each  ACE represents 1/10 the actual weight of a specific bar of gold held in an Exchange approved depository.

Similarly, an individual who is long a 1,000-oz. Silver futures contract may opt to take delivery of that futures contract, and will receive an ACE at time of delivery. At any time, thereafter, when the individual has accumulated 5 ACEs, he may convert them into a COMEX Silver warrant. While an individual is holding an ACE, he will be responsible for storage on the amount of silver represented by the ACE. Remember, each ACE represents 1/5 the actual weight of a specific bar of silver held in an Exchange approved depository.


Creating ACEs

A short position holder, for example, wishing to deliver against his E-micro Gold futures contract, will instruct his broker

to convert his 100-oz. COMEX Gold warrant into 10 ACEs in order to effect this conversion. The broker will deposit the COMEX Gold warrant with the clearing house. This warrant will be held as collateral; the clearing house will create 10 ACEs and transfer them back to the broker (or clearing firm). Delivery against the E-micro Gold Futures contract is made with these ACEs. A short position holder may rollover or close out their position prior to last trading day, or may deliver an ACE against the short position. ACEs may only be created from existing COMEX Gold warrants held in an Exchange- approved depository.

You will receive a COMEX Gold warrant, representing an actual, serial numbered bar of gold in one of the Exchange approved depositories. Once payment is made for the COMEX Gold warrant, the individual will own that bar of gold and be responsible for storage charges each month. The clearing member will debit the individual’s account each month for the appropriate storage.

Creating an ACE for the 1,000-oz. Silver futures contract is similar to the ACE creation for the E-micro Gold futures contract.


Delivery

E-micro Gold Futures – The contract does not represent physical delivery of a 10-oz. bar of gold; rather, it is a smaller size Gold futures contract which also allows for the

accumulation of ACEs. In turn, ACEs may be converted into a COMEX Gold warrant. Conversion into a 100-oz. COMEX Gold warrant is not an automatic process. If an individual  intends to take possession of a 100-oz. COMEX Gold warrant, the individual must notify their broker of such intention. Because an ACE represents a 1/10 ownership in an actual gold bar  held at an Exchange-approved depository, a holder must accumulate 10 ACEs prior to requesting conversion.

1,000-oz. Silver Futures – The contract does not represent physical delivery of a 1,000-oz. bar of silver; rather, it is a smaller-size silver futures contract which allows for the accumulation of ACEs. In turn, ACEs may be converted into a COMEX Silver warrant. Conversion into

a 5,000-oz. COMEX Silver warrant is not an automatic process. If the individual’s intention is  to  take possession of a 5,000-oz. COMEX Silver warrant, then the individual must notify their broker of such intention. Because an ACE

represents a 1/5 ownership in an actual silver bar held at an Exchange approved depository, a holder must accumulate five ACEs prior to requesting conversion.


For more information about precious metals products at CME Group, visit cmegroup.com/precious or contact metals@cmegroup.com.