News Release

CME Group Announces New Precious Metals Spot Spread

Tue Nov 01 2016

LONDON and NEW YORK, Nov. 1, 2016 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced it will offer a new Precious Metals Spot Spread to enable customers to effectively manage spot-futures spread price risk. The Spot Spread will be facilitated by the introduction of London Spot Gold futures and London Spot Silver futures contracts, and will provide traders with transparent, real-time information on the price relationship between COMEX futures and London spot markets. These two new contracts will be listed on COMEX and will begin trading on Monday, January 9, 2017, pending regulatory review.

"The introduction of the Spot Spread will enable customers to efficiently and electronically manage the risk they have between our deeply liquid COMEX Gold and Silver futures and the London spot markets," said Miguel Vias, CME Group Head of Precious Metals. "Our new contracts will provide traders with streamlined access to the London spot market via the safety and transparency of cleared, exchange-traded futures contracts. We believe the Spot Spread has the potential to create an even stronger link between the world's two largest pools of precious metals liquidity, namely benchmark COMEX Gold and Silver futures and the London spot markets."

This new inter-commodity spread trade market will be established on CME Globex between the London Spot Gold and Silver futures contracts and the active month of the COMEX Gold and Silver futures. The Precious Metals Spot Spread will enable participants to transfer risk in one simple, cost-effective transaction executed electronically on CME Globex and cleared by CME Clearing.

The new contracts behind the Spot Spread will expand CME Group's suite of COMEX precious metals contracts, including the global benchmark Gold and Silver futures contracts, and provide customers with exposure to the London spot market by creating two-day futures contracts that will result in delivery of unallocated London gold or silver.

Both London Spot Gold futures and London Spot Silver futures will be physically settled and listed for normal trading on CME Globex and for submission of block trades and exchange for related positions (EFRP) via CME ClearPort. London Spot Gold futures contract will represent 100 troy ounces of unallocated gold, and each London Spot Silver futures contract will be equivalent to 5,000 troy ounces of unallocated silver.

For more information about these new contracts, visit www.cmegroup.com/spotspread.  

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 products and metals.  Around the world, CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its exchanges based in Chicago, New York and London.  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 and over-the-counter derivatives.  CME Group's products and services ensure that businesses around the world can effectively manage risk and achieve growth.

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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