News Release

CME Group Announces the Launch of Dow Jones-UBS Commodity Index Swaps

Thu Nov 12 2009

 

 

 

CHICAGO, November 12, 2009 – CME Group, the world’s largest and most diverse derivatives marketplace, today announced the launch of clearing services for cash-settled swaps on the Dow Jones-UBS Commodity Index SM (DJ-UBSCI SM), scheduled to begin Monday, December 7. Clearing services will be available through CME ClearPort, 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.

 

The Dow Jones-UBS Commodity Index is a broadly diversified index that allows investors to track commodity futures through a single vehicle. It is composed of futures contracts on physical commodities including energy, grains, oilseeds, livestock and metals products.

 

“There is strong growth in investor demand to bring these types of products now traded in over-the-counter markets onto a centrally cleared environment, where the risk of a counterparty default is greatly diminished,” said Tim Andriesen, CME Group Managing Director of Commodity Products.

 

The commodity index swaps, which can be used as a complement to CME Group’s benchmark Dow Jones-UBS Commodity Index futures contract, will be subject to position accountability, transaction reporting, and margining and risk management standards that are comparable to commodity index futures contracts. 

 

These new OTC offerings are in addition to the successfully cleared OTC grain calendar swaps launched in April. For more information please visit www.cmegroup.com/clearport.

 

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

 

“Dow Jones”, “UBS”, “Dow Jones-UBS Commodity IndexSM”, and “DJ-UBSCISM” are service marks of Dow Jones & Company, Inc. and UBS AG, as the case may be, and have been licensed for use for certain purposes by the Board of Trade of the City of Chicago, Inc.  CBOT’s  Dow Jones-UBS Commodity Index SM  cash-settled swap futures based on the Dow Jones-UBS Commodity IndexSM, are not sponsored, endorsed, sold or promoted by Dow Jones, UBS or any of their respective subsidiaries or affiliates, and none of Dow Jones, UBS or any of their respective affiliates, makes any representation regarding the advisability of investing in such product(s).

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