News Release

CME Group Announces Variable Storage Rates for CBOT Wheat to Start with July 2010 Contract

Wed Nov 11 2009

              CHICAGO, November 11, 2009 – CME Group, the world’s largest and most diverse derivatives marketplace, today announced the implementation of variable storage rates for the CBOT Wheat futures contract, the world benchmark for wheat prices, will begin with the July 2010 contract expiration pending regulatory approval. These contracts are listed with, and subject to, the rules and regulations of the CBOT.

 

An amendment was filed with the Commodity Futures Trading Commission (CFTC) to the original request sent this fall to commence variable storage rates with the September 2010 contract.

 

The exchange has been working closely with the CFTC as well as members of the CFTC Agricultural Advisory Commission and the CFTC Subcommittee on Convergence. Changing the implementation date from the September 2010 contract to the July 2010 contract is agreeable to our customers and regulators and the July 2010 implementation is not materially different from September 2010 implementation. 

 

In addition to the start date change, the amount that triggers an increase in storage rates has been amended from 85 percent of financial full carry to 80 percent of financial full carry.

 

In order to give the CFTC time to consider these amendments, the exchange has also requested the review period be extended by two weeks until November 27, 2009.

 

For more information, please see the Special Executive Report.

 

 

 

            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 (NASDAQ: CME) and its products can be found at www.cmegroup.com

 

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