News Release

CME Group Announces the Launch of Global Physically Delivered Lead Futures

Tue Oct 13 2015

LONDON, Oct. 13, 2015 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced the launch of a new global physically delivered Lead futures contract with delivery locations available in the U.S. and Europe. This new contract will be available for customer trading as of 23 November, 2015, pending all relevant regulatory review periods.

"The introduction of this new Lead futures contract is another example of how we're working closely with customers across the commodities value chain to provide innovative solutions they can use to hedge volatile industrial metals prices," said Derek Sammann, Senior Managing Director and Global Head of Commodities and Options Products, CME Group. "This new contract builds on CME Group's already broad array of global benchmark metals products and our growing base metals offering. We're confident Lead futures will become a price reference for global lead industry participants and provide them with the transparency they need to more effectively manage their price risk."

This new Lead futures contract will build on CME Group's growing suite of physically and financially settled base metals products, including Zinc futures and Aluminium European Premium futures, which were introduced earlier in 2015.

"The addition of Lead futures to CME Group's expanding base metals portfolio will provide our industrial metals clients with capital efficiencies at a time when they are looking to mitigate risk in uncertain markets," said Michael Camacho, Head of Global Commodities at JPMorgan Chase & Co. "This new risk-management tool should be a welcome development for all market participants in the base metals industry."

This contract is expected to provide greater transparency and price discovery for market participants around the globe. Lead futures will be priced in U.S. dollars and will represent 25 metric tons of physical material, beginning with the February 2016 listed month.

CME Group's new Lead futures contract will be physically delivered in approved warehouses in Europe and the U.S. The contract will enable market participants to benefit from the reliability and proven integrity of the exchange's delivery process when they make and take delivery of physical lead.

This contract will be available for trading electronically via CME Globex, as well as submission for clearing through CME ClearPort and will be listed by and subject to the rules of COMEX.

At present, BTG Pactual Commodities Warehousing (UK) Ltd.; Henry Bath B.V.; Henry Bath LLC; C. Steinweg (Baltimore) Inc.; C. Steinweg – Handelsveem B.V.; Pacorini Metals USA LLC; Worldwide Warehouse Solutions LLC and Worldwide Warehouse Solutions UK Ltd. have applied to become exchange-approved warehouses for the storage and delivery of physical lead. The warehouse locations include Rotterdam, The Netherlands; Antwerp, Belgium and Bilbao, Spain in Europe, as well as the Baltimore, Chicago, Detroit, New Orleans and Owensboro regions of the U.S.

For more information visit www.cmegroup.com/metals.  

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, its trading facilities in New York and Chicago, and through its London-based CME Europe derivatives exchange.  CME Group also operates one of the world's leading central counterparty clearing providers through CME Clearing and CME Clearing Europe, which offer clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions.  These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.

CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc.  CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are registered 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.

CME-G

 

SOURCE CME Group

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