Earlier today, a Panel of the Chicago Mercantile Exchange Inc. (CME) Business Conduct Committee (Panel) took emergency action pursuant to CME Rule 402.C (Emergency Actions) which will be effective on Thursday, December 18, 2014. The emergency action:
With respect to the expanded limits in FC and LC futures, should one or more futures contract months within the first two listed contract months settle at limit, the daily price limits for all contract months will be expanded to $0.0675 per pound (FC) and $0.045 per pound (LC) on the next business day. If neither of the first two listed contract months settle at the expanded limit the next business day, daily price limits for all contract months will revert back to $0.045 per pound (FC) and $0.030 per pound (LC), respectively.
FC futures have been locked limit for five consecutive days as a result of various markets factors including potential declining demand. The emergency action taken by the Panel is necessary for promoting price discovery in FC and LC futures contracts and their associated products under current market conditions.
Questions regarding this Special Executive Report may be directed to David Lehman, Managing Director, Commodity Research and Product Development, at 312-930-1875, David.Lehman@cmegroup.com,
Jack Cook, Director, Commodity Research & Product Development, at 312-930-3295, Jack.Cook@cmegroup.com, Tim Andriesen, Managing Director, Commodity Products and Services at 312-930-3301, Tim.Andriesen@cmegroup.com or Tom Clark, Director, Commodity Products and Services at 312-930-4595, Thomas.Clark@cmegroup.com.
For media inquiries concerning this Special Executive Report, please contact CME Group Corporate Communications at 312-930-3434 or firstname.lastname@example.org.
© 2014 CME Group Inc. All rights reserved.
CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.