CME Group Announces Launch of Dollar-Denominated Crude Palm Oil Futures Contracts

CHICAGO and KUALA LUMPUR, Malaysia, March 8 /PRNewswire/ --CME Group, the world's leading and most diverse derivatives marketplace, today announced the launch of a dollar-denominated, cash-settled crude palm oil futures contract scheduled to begin trading on May 23, 2010, for trade date May 24. Crude palm oil is the most consumed edible oil in the world. These contracts will be listed with, and subject to, the rules and regulations of CME.

Crude palm oil is contained in a multitude of diverse products, from cooking oils and soaps to biodiesel fuel. Settlement prices at expiration of the new electronically traded futures contract will be based on Bursa Malaysia Derivatives Berhad Crude Palm Oil futures, the global benchmark for crude palm oil pricing that is traded in Malaysian ringgit. The use of the settlement prices is part of the strategic partnership agreement CME Group and Bursa Malaysia announced in August that includes a provision for CME Globex electronic trading services and an equity investment in Bursa Malaysia by CME Group.

"This opportunity to work with our Bursa Malaysia partners enables us to offer a contract that meets the growing customer demand for trading crude palm oil, one of the world's most widely used commodities, on CME Globex, the same electronic trading platform as CME Group's existing suite of agricultural products," said Tim Andriesen, CME Group Managing Director of Agricultural Products and Services. "Food processors, commercial firms and other multi-national companies who use crude palm oil and trade in U.S. currency now have an alternative for hedging that risk."

Each contract will be equivalent to 25 metric tons of crude palm oil. Trading hours of the monthly contracts will be 5:00 p.m. to 4:00 p.m. Chicago time the following day Sunday through Friday with a daily one-hour trading halt. For more information, please go to www.CMEGroup.com/palmoil.

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 largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort®.  These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk in both listed and over-the-counter derivatives markets. 

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SOURCE CME Group