News Release

CME Group Announces the Launch of Four New European Biofuel Swap Futures Contracts

Thu Apr 15 2010

 

CHICAGO/LONDON, April 15, 2010 – CME Group, the world’s leading and most diverse derivatives marketplace, today announced the launch of trading and clearing services for four new European biofuel swap futures contracts. Trading will be available on the New York trading floor and clearing services 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. Trading and clearing are scheduled to begin on April 25 for trade date April 26. These contracts will be listed by NYMEX and subject to the rules and regulations of NYMEX and CME. 

 

            The new swap futures contracts and their commodity codes will be:

·         RME biodiesel (Argus) FOB Rdam vs. ICE gasoil spread (KE)

·         FAME 0 biodiesel (Argus) FOB Rdam vs. ICE gasoil spread (LE)

·         Ethanol (Argus) T1 FOB Rdam excluding duty (WE)

·         Ethanol (Argus) T2 FOB Rdam including duty (YE)

 

The contracts will be listed for 24 consecutive months with the first listed month being the May 2010 contract.  The ethanol contracts will be 100 cubic meters in size, with a minimum price fluctuation of of $0.001 per tick (T1) and €0.001 per tick (T2). The biodiesel contracts will be 100 metric tons in size, with a minimum price fluctuation of $0.001 per tick.

 

            “These new contracts add to the already successful suite of biofuel swap futures that are currently listed on CME ClearPort and provide the ultimate level of customer protection and mitigation of counterparty risk through CME Clearing,” said Joe Raia, CME Group Managing Director of Energy Products and Services.  “This gives our global customer base the margin efficiencies that are afforded by clearing these important international contracts in one clearinghouse.”

 

About CME Group, Inc.

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. 

 

CME Group is a trademark of CME Group Inc. The Globe logo, CME, Chicago Mercantile Exchange, Globex and E-mini 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, Inc.  ClearPort, 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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