CME Group offering new aluminum European premium futures

Contract will be available for trading on CME Globex beginning September 21.


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Chicago-based derivatives trading firm CME Group, www.cmegroup.com has announced it will expand its base metals offering with the introduction of a new Aluminium European Premium Duty-Unpaid (Metal Bulletin) futures contract to begin trading on September 21, 2015.

Pending regulatory review, the new contract will be available for trading on CME Globex and for submission for clearing through CME ClearPort, and will be listed with and subject to the rules and regulations of Comex, CME says.

“Our new contract will be the first viable exchange-traded futures product to enable customers and market participants to hedge their exposure to the European aluminum premium,” says Young-Jin Chang, CME Group senior director of metals products. “This is a continuation of our commitment to engage with customers and market participants in the aluminum industry around the globe. We continue to work closely with the industry to provide them with innovative new solutions to manage aluminum premium volatility, which has reached record levels during the last three years.”

These new contracts will complement CME Group’s existing suite of aluminum risk management tools, including its Aluminum MW U.S. Transaction Premium futures and physically delivered Aluminum futures.

CME says industry participation in the Aluminum Midwest Premium contract has steadily increased, trading the equivalent of more than 650,000 metric tons since their launch in April 2012 and reaching a record 19,335 contracts open interest on September 1, 2015. Aluminum futures, introduced in May of 2014, serve as a reference price for the North American aluminum industry and allow participants to better manage their price risk, CME says.

The Aluminium European Premium futures contract will be 25 metric tons in size and will be financially settled against the Metal Bulletin assessment of aluminium spot price transactions in Europe.

For more information on CME Group’s metals products, please visit www.cmegroup.com/metals.

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