News Release

CME Group Announces Launch of International Skimmed Milk Powder Derivative Contracts

Thu Mar 25 2010

CHICAGO, March 25 /PRNewswire-FirstCall/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced the launch of International Skimmed Milk Powder futures and options on futures contracts beginning May 23 for trade date May 24, 2010. It is the first exchange-listed dairy contract with physical delivery points located around the world. These contracts are listed with, and subject to, the rules and regulations of CME.

Skimmed milk in powder form has become a popular source of protein because it does not require refrigeration, making it easier to transport and store than fluid milk or dairy products containing fat. Delivery points for the electronically traded product include Auckland (New Zealand), Los Angeles, CA (U.S.), Melbourne (Australia), Newark, NJ (U.S.), Rotterdam (Netherlands) and Seattle, WA (U.S.). 
 

"Our contract specifications for International Skimmed Milk Powder listings include global delivery points and requirements to meet Codex standards that reflect the needs of international customers,” said Tim Andriesen, CME Group Managing Director of Commodity Products and Services. “These new products will provide an important tool for hedging price risk inherent in the global dairy market."

International Skimmed Milk Powder contracts will be listed monthly with each contract representing the equivalent of 20 metric tons and a tick size of $10. Trading hours are Sunday through Friday, 5:00 p.m. to 1:55 p.m. Chicago time with daily trading halts from 4:00 p.m. to 5:00 p.m. For more information, please visit www.CMEGroup.com/Internationalmilk.

As the world’s leading 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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