Bloomberg News

CME Plans 1,000-Ounce Silver Futures Contract Starting in June

April 18, 2013

CME Group Inc. (CME:US), the owner of the world’s biggest futures exchange, is betting that increased demand for silver will drive trading for a smaller version of its two futures contracts linked to the metal.

The new contract will allow for physical delivery of 1,000 ounces starting in June, Chicago-based CME said today in a statement. The company’s Comex unit in New York already offers a 5,000-ounce contract that has physical delivery and a 2,500- ounce contract settled in cash.

Related story: Silver Slump Splits Hedge Funds From Ingot Hoarders

“The smaller size will provide market participants with greater flexibility to manage their silver-price risk and serve as a more cost-effective tool for individual investors or others looking to hedge against economic uncertainty,” Robert Ray, a managing director, said in the statement.

A 1,000-ounce contract is traded on NYSE Liffe U.S., a competing exchange.

To contact the reporters on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW

Companies Mentioned

  • CME
    (CME Group Inc/IL)
    • $80.69 USD
    • 0.82
    • 1.02%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus