CHICAGO, Aug. 9, 2013 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced the first Aluminum MW U.S. Transaction Premium Platts (25MT) Futures (AUP) contracts were traded on Thursday 8 August. This trade was brokered by Jeffries Bache. Yesterday's trade was a 54 lot strip transaction for November and December 2013 between a physical trader and a major dealer.
"This innovative aluminum swap futures contract enables commercial market participants in North America to better manage their price risk on an average basis throughout the month," said Harriet Hunnable, CME Group Managing Director, Metals.
This contract is the first Exchange product that enables the aluminum Midwest premium to be managed. This is a complementary product to the LME aluminum contract. The US Midwest aluminum premium was originally created to cover the freight from Baltimore to the Midwest. It now incorporates supply and demand of the North American-specific market to complement the LME aluminum contract. In the past three years, the premium increased from $0.04/lb to close to $0.09/lb and it is now a larger component of the aluminum consumer's cost and risk. This contract enables market participants in North America to better manage their price risk.
CME Group has a broad range of hedging tools for the precious, ferrous and base metals markets. For more information please visit www.cmegroup.com/metals .
Aluminum Midwest Premium futures contracts are listed by and subject to the rules of COMEX.
About CME Group
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the world's leading central counterparty clearing providers, which offers clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. KCBOT, KCBT and Kansas City Board of Trade are trademarks of The Board of Trade of Kansas City, Missouri, Inc. All other trademarks are the property of their respective owners. Further information about CME Group (NASDAQ: CME) and its products can be found at www.cmegroup.com.
SOURCE CME Group