CME Group has launched physically delivered Zinc futures contracts to begin trading on 29 June, 2015, pending all relevant regulatory review periods.
These new Zinc futures contracts will build on CME Group's suite of physically and financially settled base metals products, and provide greater transparency and price discovery for market participants in North America and around the globe. Zinc futures will be priced in US dollars and will represent 25 metric tons of physical material, beginning with the October 2015 listed month.
"Customers across the global physical commodities value chain rely on the accurate price discovery and risk transfer that CME Group's commodity risk management tools provide," says Derek Sammann, Senior Managing Director and Global Head of Commodities and Options Products, CME Group. "The introduction of this physical zinc futures contract further strengthens our value proposition to industrial metals participants and enables them to take advantage of the integrity and efficiency of our warehousing practices."
"We're pleased that CME Group has responded swiftly and decisively to industry feedback for a new and transparent North American benchmark for zinc," says Michael Camacho, Co-Head of Global Commodities, JPMorgan Chase & Co. "We expect this contract will bring new opportunities and enhance the risk-management services that we offer in zinc for our commercial customers in North America."
CME Group's new Zinc futures contract will be physically delivered in approved warehouses across the US The contract will enable market participants to benefit from the reliability and proven integrity of the exchange's delivery process when they make and take delivery of high grade zinc of 99.995 per cent purity.
These contracts will be available for trading electronically via CME Globex, as well as submission for clearing through CME ClearPort and will be listed by and subject to the rules of COMEX.
At present, C Steinweg, Inc, Henry Bath LLC and Dearborn Distribution Services have applied to become exchange-approved warehouses for the delivery and storage of physical zinc in the Baltimore, New Orleans, Chicago and Detroit regions.
