The new contract will be launched to give traders increased flexibility.
As brokers and Liquidity providers struggle with a liquidity squeeze on gold, CME Group announced on Tuesday that it would launch a new gold futures contract to give traders increased flexibility.
Specifically, the new contract has expanded delivery options and includes 100-troy ounce, 400-troy ounce, and 1-kilo gold bars. The contract is expected to launch with a first expiration of April 2020, the derivatives exchange said, pending regulatory approval.
Commenting on the new product, Derek Sammann, Senior Managing Director and Global Head of Commodity and Options Products, CME Group said in the statement: "This time of unprecedented market conditions has led to growing demand for a broader range of delivery needs for our clients worldwide."
"By offering a choice of delivery sizes as well as inter-commodity spreads with our benchmark gold futures, this new contract will provide customers with maximum flexibility in managing physical delivery."
CME Group is yet to announce the specific launch date, with the company planning on clarifying this later in the week. However, the exchange did reveal that the new futures contract will be available for trading on CME Globex.
The contract is also available for submission for clearing via CME ClearPort, and it will be subject to the rules and regulations of COMEX.
Gold liquidity squeeze amid COVID-19
CME Group's announcement comes as demand is far outweighing supply for the commodity. In fact, Liquidity Providers have been struggling to price gold, leading to increased spreads. Brokers, such as Alpari, have switched all XAU and XAG symbol to "Close-Only" mode until further notice.
As reported by the Financial Times on Tuesday, traders have signaled a growing shortage of gold bars, as the coronavirus pandemic has caused an increase in demand while at the same time, has disrupted supply, "with one business comparing the frenzied buying of the yellow metal with the consumer rush for toilet roll."
As brokers and Liquidity providers struggle with a liquidity squeeze on gold, CME Group announced on Tuesday that it would launch a new gold futures contract to give traders increased flexibility.
Specifically, the new contract has expanded delivery options and includes 100-troy ounce, 400-troy ounce, and 1-kilo gold bars. The contract is expected to launch with a first expiration of April 2020, the derivatives exchange said, pending regulatory approval.
Commenting on the new product, Derek Sammann, Senior Managing Director and Global Head of Commodity and Options Products, CME Group said in the statement: "This time of unprecedented market conditions has led to growing demand for a broader range of delivery needs for our clients worldwide."
"By offering a choice of delivery sizes as well as inter-commodity spreads with our benchmark gold futures, this new contract will provide customers with maximum flexibility in managing physical delivery."
CME Group is yet to announce the specific launch date, with the company planning on clarifying this later in the week. However, the exchange did reveal that the new futures contract will be available for trading on CME Globex.
The contract is also available for submission for clearing via CME ClearPort, and it will be subject to the rules and regulations of COMEX.
Gold liquidity squeeze amid COVID-19
CME Group's announcement comes as demand is far outweighing supply for the commodity. In fact, Liquidity Providers have been struggling to price gold, leading to increased spreads. Brokers, such as Alpari, have switched all XAU and XAG symbol to "Close-Only" mode until further notice.
As reported by the Financial Times on Tuesday, traders have signaled a growing shortage of gold bars, as the coronavirus pandemic has caused an increase in demand while at the same time, has disrupted supply, "with one business comparing the frenzied buying of the yellow metal with the consumer rush for toilet roll."
FX Volatility Impacts Q1 Revenue of Compagnie Financière Tradition
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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