SAO PAULO, March 20, 2013 /PRNewswire/ -- BM&FBOVESPA will launch a new cash-settled mini Crude Oil derivatives contract on June 21, based on the settlement price of CME Group's NYMEX Light Sweet Crude Oil (WTI) futures contract.
The new contract will be authorized for trading as of the August 2013 contract month, from 9:00 a.m. to 4:00 p.m. under the WTI ticker. The size of each futures contract is equivalent to 10% of the original contract, representing 100 barrels of crude oil and quoted in United States Dollars. The settlement prices of the cash-settled mini Crude Oil futures contract will be calculated from the settlement prices that have their methodology available at http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html.
The launch is part of an agreement with CME Group to promote the cross-listing of futures contracts designed to meet the needs of local market participants. The new contract will allow local lifters, refiners, fuel distributors, importers, exporters, suppliers of oil-based products and other participants to execute hedging strategies that mitigate against price risk in the energy markets.
New derivatives contracts to have market makers
A Market Maker program will be launched with this contract to promote liquidity from the start of trading. Up to three financial institutions will be selected to operate as market maker (including foreign institutions) via a competitive bidding process. The interested institutions must send their proposals to BM&FBOVESPA by April 19. The winners will be announced as of June 07.
Energy commodities portfolio
The BM&FBOVESPA energy commodities portfolio has become even more robust with this launch. The range of products in this segment now covers three commodities: cash-settled hydrous ethanol, anhydrous fuel ethanol with physical delivery and cash-settled crude oil.
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.
About BM&FBOVESPA BM&FBOVESPA is the world's third largest exchange by market value. The largest equity and futures exchange in Latin America, BM&FBOVESPA develops and manages systems for the trading and settlement of securities and derivatives products based on interest rates, foreign exchange, equity and inflation indices, financial indicators, agricultural and energy commodities and more. With its fully integrated business model BM&FBOVESPA offers not only a state-of-the-art trading environment, but also registration, clearing, settlement, risk management, central counterparty and depository services. For more information about BM&FBOVESPA, please visit: http://www.bmfbovespa.com.br
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SOURCE CME Group