The Precious Metals Spot Spread

Seamlessly and transparently bridge the COMEX Precious Metals futures market and the London OTC market with the new Precious Metals Spot Spread at CME Group, available January 9. The Spot Spread easily and efficiently transfers the risk between COMEX and London in one simple and cost-effective transaction, executed electronically on CME Globex and automatically fed into CME Clearing.

Understanding the Spot Spread

The Spot Spread 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).

Which Market Participants Will Benefit?

The Spot Spread is 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 Spread to take advantage of arbitrage opportunities or to manage price exposure.

Contracts Behind the Spot Spread

Two daily contracts available January 8 (for first trade date January 9) 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.

Key Benefits

  • Offset risk in COMEX futures and London OTC markets
  • True intraday price transparency
  • Guaranteed counterparty credit and segregation of customer funds through CME Clearing
  • Easily accessible electronic execution on CME Globex
  • Available for clearing on CME ClearPort for privately negotiated trades

Product Codes

  COMEX Futures
London Spot Futures
Precious Metals Spot Spread
Gold GC GSP GC:GSP
Silver SI SSP SI:SSP

London Spot Gold Futures

Contract Specifications

Contract Unit

100 troy ounces

Price Quotation

U.S. Dollars and Cents

Trading Hours

CME Globex and CME ClearPort: Sunday - Friday 6:00 p.m. - 5:00 p.m. (5:00 p.m. - 4:00 p.m. Chicago Time/CT) with a 60-minute break each day beginning at 5:00 p.m. (4:00 p.m. CT)

Minimum Trade Price Fluctuation

$0.10 per troy ounce

Minimum Daily and Final Settlement Price Fluctuation

$0.01 per troy ounce

Minimum Spread Price Fluctuation

GC:GSP
$0.01 per troy ounce

Product Code

GSP

Listed Contracts

One daily contract

Termination of Trading

Daily

Exchange Rulebook Chapter

129

Block Minimum

25

London Spot Silver Futures

Contract Specifications

Contract Unit

5,000 troy ounces

Price Quotation

U.S. Dollars and Cents

Trading Hours

CME Globex and CME ClearPort: Sunday - Friday 6:00 p.m. - 5:00 p.m. (5:00 p.m. - 4:00 p.m. Chicago Time/CT) with a 60-minute break each day beginning at 5:00 p.m. (4:00 p.m. CT)

Minimum Trade Price Fluctuation

$0.005 per troy ounce

Minimum Daily and Final Settlement Price Fluctuation

$0.001 per troy ounce

Minimum Spread Price Fluctuation

SI:SSP
$0.001 per troy ounce

Product Code

SSP

Listed Contracts

One daily contract

Termination of Trading

Daily

Exchange Rulebook Chapter

130

Block Minimum

25

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