Thu Apr 18 2013
CME Group Inc said on Thursday it
will launch a 1,000-ounce silver futures contract, set to begin trading in
June, in a bid to boost trading volume in the precious metal. CME Group's new
product is set to compete with NYSE Liffe's existing 1,000-ounce mini silver
futures contract, which has generated interest among participants who prefer to
trade smaller silver futures.
The Chicago-based exchange
operator is offering the new silver product in response to customer demand,
Robert Ray, CME Group's managing director overseeing the Europe, Middle East
and Africa (EMEA) region, said in a statement. Currently, CME Group offers a
5,000-ounce silver contract in the Comex division of the Nymex, the benchmark
futures contract for the silver market, as well as a smaller 2,500-ounce MiNY
silver contract.
The new CME contract will be fully fungible and deliverable against CME's benchmark 5,000-ounce silver futures contract, CME said. At one-fifth the size the benchmark silver contract, participants who accumulate five warehouse depository receipts of the 1,000-oz contract can convert them into one 5,000-oz contract, CME said.
Source: Economictimes.Indiatimes.com