Q3 2019 Metals Update

  • 5 Jul 2019
  • By CME Group
  • Topics: Metals

CME Group to Launch New Gold Futures Contracts in Partnership with Shanghai Gold Exchange (SGE)

In the Q4 2019, pending regulatory reviews, CME Group will launch two new financially-settled gold futures contracts denominated in U.S. dollars and Chinese renminbi: Shanghai Gold (USD) futures and Shanghai Gold (CNH) futures.

These contracts will connect the global liquidity of COMEX Gold futures to the world's largest physical gold market in China through SGE.

More on SGE Gold


New Initiatives to Better Serve the Global Aluminum Industry

Globalization of Physically Settled Aluminum (ALI)

We have modified ALI to duty unpaid with global delivery points. Advantages of the changes include: the addition of outdoor storage, transparent price discovery process and fees, margin efficiencies with other CME Group products, futures margining and monthly futures structure.

The contract is complementary to Aluminum premium contract suites (~600 ADV with 50K OI), with regular commercial client engagements.

Global ALI allows for trade opportunities across exchanges and serves as an additional point of liquidity. 

More on Global ALI

CME Chat: Now Live for Aluminum Industry

Increase operational efficiencies across the supply chain using secure CME Chat to source liquidity for CME Group futures products and  physical market transactions, communicate with counterparties, and view CME Globex and CME ClearPort market activity in real-time. 

CME Chat is available on desktop and mobile, so you can stay connected wherever you are.

More on CME Chat


Copper TAM

A new reference price for COMEX Copper futures for the European time zone is settled at 12:35 BST. Approximately 98% correlated to the London Cash Official close over past four years.

More on Copper TAM


E-micro Gold (MGC) Posts Record Quarterly Volume in Q2

Benefits of E-micro Gold and Silver include:

  • YTD E-micro (10oz) Gold average daily volume stands at 11,495 lots is +83% from 2018
  • YTD 1,000 oz Silver futures average daily volume stands at 773 lots, +122% vs 2018
  • Fungible with larger GC and SI contracts 
  • Affordable, requiring lower initial capital outlay, with lower margin and exchange fees

Record Volume Month for COMEX Gold Options

June average daily volume in Gold options (105k contracts, +134% vs. June 2018) and Gold Weekly options (9.5k contracts, +450% vs. June 2018) both set all-time monthly records.

Gold options (OG) volume on June 20 was 199,579 contracts, ranking as the second highest volume day in complex history.

Liquidity improved dramatically during London trading hours in June with volume of 25K+ in Gold options contracts trading daily during London morning sessions.


Market Commentary from CPM Group

Institutional investors move to exchange-traded futures and options from OTC forwards, swaps and options in Metals.

Read the Commentary


Join Us at the CME Group Precious Metals Dinner

Join us for this year's "must attend" event: The Precious Metals Dinner. The portal is now open for sponsorship and seat purchases. 

When:
September 11, 2019
6:00 p.m. – 10:00 p.m.

Where:
Gotham Hall
1356 Broadway
New York, NY 10018

Speaker:
Dr. Jacob A. Frenkel
Chairman, JPMorgan Chase International
Chairman of the Board of Trustees, Group of Thirty (G-30)


Record Volume in NYMEX Hot-Rolled Coil Steel futures in May

Average daily volume exceeded 1,300 lots (approx. $15.5M notional) during the month of May while setting two single-day volume records of 4,273 ($51M) lots and 4,473 ($54M) lots on May 9 and 24, respectively.

CME Globex on-screen volume reached a record during Q2 2019, with outrights, strips and spreads all being executed.

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