CME Adds Four New Palm Contracts to Risk Management Products
Just before markets opened on Monday, CME group announced the launch of four new palm contracts to begin trading on July 11, 2016, pending all regulatory review periods. The four contracts are intended to increase the company’s offerings within the palm derivatives complex.
The four contracts include the USD Malaysian Crude Palm Oil Calendar futures (CPO), the USD Malaysian Palm Olein Calendar futures (OPF), the USD Malaysian Crude Palm Oil Average price option (POO), and the Bursa Malaysia Crude Palm Oil-Gasoil Spread futures (POG).
Nelson Low, CME’s Executive Director of Agricultural Products, stated, “Our customers have shown increased awareness of, and interest in using cleared futures on top of their traditional OTC position in managing their risks, and these four new contracts will provide them with the flexibility and efficiency to manage exposure to price volatility in the global palm oil market.”
CME Group is the world’s leading and most diverse derivatives marketplace. More than 170,000 contracts, representing 4.25 million MT, have been cleared been cleared since the launch of its Crude Palm Oil and Palm Olein swaps in 2013.