News Release

CME Group Announces Livestock Calendar Spread Options

Thu Oct 29 2009

          CHICAGO, October 29, 2009 – CME Group, the world’s largest and most diverse derivatives marketplace, announced today the launch of calendar spread options for live cattle and lean hog contracts, scheduled to be available for trading on Monday, Dec. 7. These contracts are listed with, and subject to, the rules and regulations of CME.

Options on calendar spreads will enable customers to mitigate the risk of changing price differentials between successive futures contract months when rolling from one futures contract month to another.

 

“These products can help market participants manage intra-market volatility in our livestock products at a fixed, predefined cost. Livestock calendar spread options brings to managing spread risk what options on futures have provided in managing outright price risk,” said Tim Andriesen, CME Group Managing Director of Commodity Products.

 

The calendar spread options will be available on CME Globex® and on the trading floors in the live cattle and lean hog pits. Trading hours will be the same as for options on livestock futures: on CME Globex from 9:05 a.m. to 1:55 p.m. Central time, Monday through Friday, with a daily trading halt from 4:00 p.m. to 5:00 p.m., and on the trading floors from 9:05 a.m. to 1:02 p.m. weekdays.

 

            As the world’s largest 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 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®.  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 and its products can be found at www.cmegroup.com

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