Seamlessly and transparently bridge the COMEX Precious Metals futures market and the London OTC market with the new Precious Metals Spot Spreads at CME Group. The Spot Spreads easily and efficiently transfer the risk between COMEX and London in one simple and cost-effective transaction, executed electronically on CME Globex and automatically fed into CME Clearing.
The Spot Spreads represents the difference between the new London Spot Gold futures and COMEX Gold futures and, similarly, the difference between the new London Spot Silver futures and COMEX Silver futures. The London Spot futures contracts will be listed daily (Contract Day) and spread against the respective COMEX Gold and Silver futures active contract month. Both London Spot futures contracts will deliver as unallocated London metal two days after the Contract Day (T+2).
The Spot Spreads are most relevant to market participants who currently trade in both the OTC and futures markets and routinely transfer risk between the two markets. Investors and liquidity providers also may use the Spot Spreads to take advantage of arbitrage opportunities or to manage price exposure.
Two daily contracts make trading the spot spread possible: COMEX London Spot Gold and London Spot Silver futures. Spreading the two new contracts with our liquid COMEX Gold and Silver futures contracts, respectively, gives you a way to easily manage risk on the difference between futures and OTC markets.