News Release

CME Group and MGEX Announce the Launch of MGEX-CBOT Wheat Spread Options

Thu Mar 01 2012

CHICAGO and MINNEAPOLIS, March 1, 2012 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace and MGEX, a Designated Contract Market and Derivatives Clearing Organization, today announced the launch of MGEX-CBOT Wheat Spread Options to begin trading on March 26. These contracts are listed with, and subject to, the rules and regulations of CBOT.

MGEX-CBOT Wheat Spread Options are unique hedging tools based on the price differentials between hard red spring wheat futures listed on the Minneapolis Grain Exchange, Inc. (MGEX) and soft red winter wheat futures on the Chicago Board of Trade (CBOT), which are the result of fundamental supply and demand factors and varying protein levels between these two distinct classes of wheat.

"For years, market participants have used spread trading strategies to express a point of view about the price differences in these distinct varieties of wheat," said Tim Andriesen, Managing Director, Agricultural Commodities and Alternative Investments, CME Group. "These cost-effective and unique spread options from CME Group will enable global wheat industry participants to access our deep and liquid wheat markets to manage the risk associated with the price differentials inherent between these classes of wheat."

This adds to CME Group's already broad wheat market offering. Today, customers can access underlying CBOT, MGEX and Kansas City (KCBOT) wheat markets through the CME Globex electronic trading platform.

 "MGEX is pleased to partner with CME Group in offering market participants another way to access MGEX's high protein Hard Red Spring Wheat (HRSW) contract," Eric J. Delain, Corporate Counsel, MGEX said. "We expect these spread options will be a valuable risk management tool as a compliment to the MGEX HRSW futures contract."

Three MGEX-CBOT Wheat Spread options will be listed for both open-outcry and electronic trading:

  • MGEX July – CBOT July
  • MGEX September – CBOT July
  • MGEX December – CBOT December

For more information about CBOT Wheat Futures and Options, please visit www.cmegroup.com/trading/agricultural/cbot-wheat-futures.html.

About CME Group

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

About MGEX

MGEX is a Designated Contract Market and Derivatives Clearing Organization based in Minneapolis, MN and is the world's largest market for Hard Red Spring Wheat (HRSW) futures and options. Established in 1881, MGEX is also the only market for National Corn Index (NCI), National Soybean Index (NSI), Hard Red Winter Wheat Index (HRWI), Hard Red Spring Wheat Index (HRSI), and Soft Red Winter Wheat Index (SRWI) futures and options. To learn more about MGEX visit www.mgex.com.

CME-G

 

SOURCE CME Group

Corporate Communications

+1 312 930 3434
Email