CME Group (CME) plans to launch port iron ore futures

Groupe CME inc. CME is set to unveil two port iron ore futures contracts in China. They will be launched, after regulatory approval, on January 10, 2022.

The two contracts, Iron Ore China Portside Fines CNH, for the Qingdao (Argus) futures contract and Iron Ore China Portside Fines USD Seaborne Equivalent (Argus) futures contract, will be financially settled based on the port price estimates published by Argus Media.

The Iron Ore China Portside Fines CNH futures contract, fot Qingdao (Argus) is a new futures product offered by COMEX, which is quoted in Chinese Renminbi (CNH) per wet metric ton. The Iron Ore China Portside Fines USD Seaborne Equivalent (Argus) futures contract is a new futures product offered by COMEX, which is quoted in USD per dry metric ton.

The CME Group’s range of ferrous products includes futures and options on iron ore and steel. These futures contracts provide risk management tools for global commodities throughout the supply chain. The CME Group’s range of ferrous metals is traded over-the-counter and cleared through CME ClearPort and CME Globex, which offer $ 8 billion in financial guarantees.

These new futures are expected to minimize supply chain risks, trade financially settled contracts against the best price indices in the industry, and hedge exposure to global economic growth.

The CME Group continues to focus on growing and acquiring new customers by expanding, innovating and evolving its core offerings and increasing the participation of non-US customers. This is achieved by expanding its global sales team, cross-selling products, expanding existing benchmark products, product and service launches, and deepening open interest in contract offerings. futures and basic options.

The new iron ore futures contracts will complement CME Group’s existing ferrous product line. In order to meet the growing demand for these new tools, CME Group plans to launch these futures contracts, which should effectively manage price risk.

Over the past decade, CME Group has been a pioneer in managing the price risks of ferrous metals. It offers a versatile set of solutions throughout the ferrous supply chain. It has also invested in the expansion of the iron ore space, with products covering two similar parts of the iron ore supply chain.

The iron ore market is one of the largest physical commodity markets in the world with an annual production of over 2.5 billion tonnes. CME Group’s products provide customers with access to hedging and risk management solutions for exposure to maritime and port iron ore. The CME Group Iron Ore suite helps manage price risk independent of physical supply. Futures and options are a profitable hedging tool to mitigate risk and protect profit margins.

The CME Group stock exchange consists of contract markets designated for the trading of futures and options. It allows clients to trade futures, options, cash and over-the-counter (OTC) and optimize portfolios. He is focused on maximizing the growth of futures and options globally, diversifying businesses and revenues, and delivering unprecedented customer efficiency and operational excellence.

The shares of this largest futures exchange in the world in terms of trading volume as well as notional value traded rose 26.3% in the past year compared to the 31.4% increase in l ‘industry. Nevertheless, the company’s policy aimed at accelerating its growth profile and its capital position should allow the action to regain momentum.

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The action is currently Zacks Rank # 3 (Hold).

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