CME Group to Launch New Precious Metals Spot Spread
- The two new contracts will be listed on COMEX and will begin trading on 9 January 2017.
CME Group, one of the world’s paramount derivatives marketplaces, has announced that it will offer a new Precious Metals Spot Spread to enable customers to effectively manage spot-futures spread price risk.
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The Spot Spread will be facilitated by the introduction of London Spot Gold futures and London Spot Silver futures contracts, and will provide traders with transparent, real-time information on the price relationship between COMEX futures and London spot markets. The new contracts will be listed on COMEX and will begin trading on 9 January 2017, subject to regulatory review.
Our new contracts will provide traders with streamlined access to the London spot market.
Miguel Vias, CME Group Head of Precious Metals, commented: "The introduction of the Spot Spread will enable customers to efficiently and electronically manage the risk they have between our deeply liquid COMEX Gold and Silver futures and the London spot markets. Our new contracts will provide traders with streamlined access to the London spot market via the safety and transparency of cleared, Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term-traded futures contracts."
The new inter-commodity spread trade market will be established on CME Globex between the London Spot Gold and Silver futures contracts and the active month of the COMEX Gold and Silver futures. The Precious Metals Spot Spread will enable participants to transfer risk in one simple, cost-effective transaction executed electronically on CME Globex and cleared by CME Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. This gives credit to the bank where funds are deposited and a corresponding debit to the account of the paying institution. The Federal Reserve operates a nationwide check-clearing system. Clearing also is used to signify matching buyers and sellers in stock, futures, and options transactions. Understanding ClearingToday, any type of payment can be cleared. A credit card payment is cleared through the payment merchant. It can be said that clearing is the settlement of balances and transactions. There is also an act of cleaning contracts and risk through A clearinghouse, like CME Clearing, which is an intermediary between buyers and sellers in the derivatives market. As the intermediary or counterparty, to every trade, CME Clearing acts as the buyer for every seller and the seller for every buyer for every transaction on an exchange. Stocks are cleared through global stock exchanges similar to the New York Stock Exchange (NYSE). The clearing is the process of updating the accounts of the trading parties and arranging for the transfer of money and securities. Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. This gives credit to the bank where funds are deposited and a corresponding debit to the account of the paying institution. The Federal Reserve operates a nationwide check-clearing system. Clearing also is used to signify matching buyers and sellers in stock, futures, and options transactions. Understanding ClearingToday, any type of payment can be cleared. A credit card payment is cleared through the payment merchant. It can be said that clearing is the settlement of balances and transactions. There is also an act of cleaning contracts and risk through A clearinghouse, like CME Clearing, which is an intermediary between buyers and sellers in the derivatives market. As the intermediary or counterparty, to every trade, CME Clearing acts as the buyer for every seller and the seller for every buyer for every transaction on an exchange. Stocks are cleared through global stock exchanges similar to the New York Stock Exchange (NYSE). The clearing is the process of updating the accounts of the trading parties and arranging for the transfer of money and securities. Read this Term.
Expanding Suite of COMEX Precious Metals Contracts
The new contracts behind the Spot Spread will expand CME Group's suite of COMEX precious metals contracts, while adding to the three new contracts - Gold/Silver Ratio futures, Gold/Platinum Spread futures and Platinum/Palladium Spread futures - which began trading on 24 October 2016, as reported by Finance Magnates.
They will also provide customers with exposure to the London spot market by creating two-day futures contracts that will result in delivery of unallocated London gold or silver.
Both London Spot Gold futures and London Spot Silver futures will be physically settled and listed for normal trading on CME Globex and for submission of block trades and exchange for related positions (EFRP) via CME ClearPort.
London Spot Gold futures contract will represent 100 troy ounces of unallocated gold, and each London Spot Silver futures contract will be equivalent to 5,000 troy ounces of unallocated silver.
CME Group, one of the world’s paramount derivatives marketplaces, has announced that it will offer a new Precious Metals Spot Spread to enable customers to effectively manage spot-futures spread price risk.
The FM London Summit is almost here. Register today!
The Spot Spread will be facilitated by the introduction of London Spot Gold futures and London Spot Silver futures contracts, and will provide traders with transparent, real-time information on the price relationship between COMEX futures and London spot markets. The new contracts will be listed on COMEX and will begin trading on 9 January 2017, subject to regulatory review.
Our new contracts will provide traders with streamlined access to the London spot market.
Miguel Vias, CME Group Head of Precious Metals, commented: "The introduction of the Spot Spread will enable customers to efficiently and electronically manage the risk they have between our deeply liquid COMEX Gold and Silver futures and the London spot markets. Our new contracts will provide traders with streamlined access to the London spot market via the safety and transparency of cleared, Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term-traded futures contracts."
The new inter-commodity spread trade market will be established on CME Globex between the London Spot Gold and Silver futures contracts and the active month of the COMEX Gold and Silver futures. The Precious Metals Spot Spread will enable participants to transfer risk in one simple, cost-effective transaction executed electronically on CME Globex and cleared by CME Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. This gives credit to the bank where funds are deposited and a corresponding debit to the account of the paying institution. The Federal Reserve operates a nationwide check-clearing system. Clearing also is used to signify matching buyers and sellers in stock, futures, and options transactions. Understanding ClearingToday, any type of payment can be cleared. A credit card payment is cleared through the payment merchant. It can be said that clearing is the settlement of balances and transactions. There is also an act of cleaning contracts and risk through A clearinghouse, like CME Clearing, which is an intermediary between buyers and sellers in the derivatives market. As the intermediary or counterparty, to every trade, CME Clearing acts as the buyer for every seller and the seller for every buyer for every transaction on an exchange. Stocks are cleared through global stock exchanges similar to the New York Stock Exchange (NYSE). The clearing is the process of updating the accounts of the trading parties and arranging for the transfer of money and securities. Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. This gives credit to the bank where funds are deposited and a corresponding debit to the account of the paying institution. The Federal Reserve operates a nationwide check-clearing system. Clearing also is used to signify matching buyers and sellers in stock, futures, and options transactions. Understanding ClearingToday, any type of payment can be cleared. A credit card payment is cleared through the payment merchant. It can be said that clearing is the settlement of balances and transactions. There is also an act of cleaning contracts and risk through A clearinghouse, like CME Clearing, which is an intermediary between buyers and sellers in the derivatives market. As the intermediary or counterparty, to every trade, CME Clearing acts as the buyer for every seller and the seller for every buyer for every transaction on an exchange. Stocks are cleared through global stock exchanges similar to the New York Stock Exchange (NYSE). The clearing is the process of updating the accounts of the trading parties and arranging for the transfer of money and securities. Read this Term.
Expanding Suite of COMEX Precious Metals Contracts
The new contracts behind the Spot Spread will expand CME Group's suite of COMEX precious metals contracts, while adding to the three new contracts - Gold/Silver Ratio futures, Gold/Platinum Spread futures and Platinum/Palladium Spread futures - which began trading on 24 October 2016, as reported by Finance Magnates.
They will also provide customers with exposure to the London spot market by creating two-day futures contracts that will result in delivery of unallocated London gold or silver.
Both London Spot Gold futures and London Spot Silver futures will be physically settled and listed for normal trading on CME Globex and for submission of block trades and exchange for related positions (EFRP) via CME ClearPort.
London Spot Gold futures contract will represent 100 troy ounces of unallocated gold, and each London Spot Silver futures contract will be equivalent to 5,000 troy ounces of unallocated silver.