CME Group, the derivatives exchange, will launch US Midwest Domestic Hot-Rolled Coil (HRC) steel futures contracts for trading and clearing on CME Globex(R) and ClearPort(R), beginning on 19 October for the 20 October trade date.
The contract will be financially settled against an index developed by CRU International and reflects an assessment of the prevailing market prices for US Midwest Domestic HRC steel. The contract size will be 20 short tons with a minimum price fluctuation of $5 per short ton and will be listed for 18 consecutive months.
“In these uncertain financial markets, an exchange traded contract will provide customers with market transparency and integrity,” says Rick Redding, CME Group managing director of products and services. “In its more than 100 year history, CME Group has never had a credit default. By being at the center of every transaction, CME Clearing processes are designed to protect market user’s interests and ensure the integrity of the marketplace.”
D.C.