CME Group and B3 to Jointly Develop New Soybean Futures Contracts

The agreement aims to connect global participants to Brazilian agricultural markets.

U.S. derivatives giant CME Group and B3 S.A., a financial market infrastructure firm, announced an agreement to jointly develop risk management products for both Brazilian domestic and global market participants. Under the terms of the agreement, CME Group and B3 will work together to launch futures on Brazilian soybeans in Q3 2020, pending regulatory approvals.

These new futures contracts will build on the existing cooperation agreement CME Group and B3 have had in place since 2007 for technology services and cross-listing of futures products, the firms revealed.

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The new, expanded agreement also includes the extension of the existing B3 cross-listed mini-soybean futures and options contracts, and will allow the companies to evaluate potential products related to South American soybean and soybean-related products.

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Greater benefits for Brazilian customers

“Brazil is an important player in the global grain and oilseed trade and is expected to export over 83 million metric tons of soybeans this year alone,” said Tim Andriesen, CME Group managing director of agricultural products. “These new futures contracts respond to the demand from our customers for regional hedging and price discovery tools that complement the deep liquidity of our benchmark grain and oilseed futures and options.”

“This expanded strategic partnership will bring even greater benefits to our Brazilian customers by providing a benchmark specifically related to Brazilian soybean export prices,” said Louis Gourbin, superintendent, commodities at B3.

“As our relationship grows, we are excited to explore joint risk management products that will bring additional South American-based trading solutions to the global marketplace,” he added.

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