• Listing 1,000-oz. Silver Futures Contract for Trading on COMEX Trading Floor and CME Globex and for Submission for Clearing through CME ClearPort

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-6658
      • Notice Date
      • 17 May 2013
      • Effective Date
      • 16 June 2013
    • Effective Sunday, June 16, 2013 for trade date Monday, June 17, 2013, and pending all relevant CFTC regulatory review periods, Commodity Exchange, Inc. (COMEX or Exchange) will list a new physically-delivered silver contract: 1,000-oz. Silver Futures (commodity code: SIL; chapter 121). The 1,000 oz.-Silver Futures contract (SIL) will be fungible with COMEX’s benchmark Silver Futures contract (commodity code: SI; chapter: 112; contract size: 5,000 troy oz.). Deliveries of 1,000 oz.-Silver Futures may be made through conversion of Accumulated Certificates of Exchange (ACEs), which are issued by the Clearing House. 
      This contract will be available for trading on the COMEX trading floor and CME Globex, and for submission for clearing through CME ClearPort.
      The contract specifications are provided below:

      Contract Name
      1,000 oz.-Silver Futures
      Commodity Code
      Rulebook Chapter
      Contract Size
      1,000 troy ounces
      Listing Schedule
      current calendar month; the next two calendar months and any January, March, May, July, September, and December falling within a 12-month period beginning with the current month
      Termination of Trading
      Third last business day of the contract month
      Minimum Price Fluctuation
      Outright $0.01
      Spread $0.005
      Settlement $0.001
      First Listed Month
      September 2013
      Block Trade Minimum Threshold
      125 contracts

      Trading and Clearing Hours:
      CME Globex and CME ClearPort: Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT).
      COMEX Trading Floor: Monday – Friday 8:25 a.m. – 1:25 p.m. (7:25 a.m. – 12:25 p.m. CT)
      Conversion and Delivery:
      As previously stated, deliveries of 1,000 oz.-Silver Futures may be made through conversion of Accumulated Certificates of Exchange (ACEs) which are issued by the Clearing House. 
      ACEs may only be redeemed for a COMEX Silver Warrant (Warrant) upon the accumulation of five (5) such ACEs. Upon presentation and endorsement to the Clearing House of five (5) ACEs, the owner will receive one (1) electronic Warrant meeting the specifications of the COMEX 5,000 troy ounce Silver Futures contract. Tolerance adjustments for ounces received vs. ounces represented by the ACEs will be made through the Clearing House. Storage charges are invoiced to the Clearing Member who owns the ACEs.
      Upon delivery, the buyer’s clearing member receives and the seller’s clearing member delivers an ACE issued by the Clearing House. A Warrant represents ownership of 5,000 troy ounces of silver.  An ACE represents 20% ownership of a Warrant.
      A clearing member may request the issuance of five (5) ACEs by electronically endorsing to the Clearing House a Warrant.
        Trading and Clearing Fees:


      Exchange Fees
      Member Day
      Cross Division
      Processing Fees
      Cash Settlement
      Futures from E/A
      *applies to futures contracts
      House Acct
      Cust Acct
      Options E/A Notice
      Delivery Notice
      *applies to physical futures
      Additional Fees and Surcharges
      EFS Surcharge
      *$2.50 fee typically only charged on our core physical contracts
      Block Surcharge
      *$0.10 fee charged on block trades
      Facilitation Desk Fee
      *fee applies to CPC trades entered by ClearPort Market Ops

      Metals Research:
      Bob Biolsi                                 bob.biolsi@cmegroup.com                               212.299.2610
      Joann Arena                              joann.arena@cmegroup.com                            212.299.2356