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CME Group, the world's leading and most diverse derivatives marketplace, today announced 574 lots of the new physically delivered Silver (1,000 oz.) futures contracts traded last week, with trades taking place each day.
"As our benchmark Silver 5,000 oz. contract celebrates its 50th anniversary of continuous trading, this new 1,000 oz. fungible contract offers a cost-effective way to manage risk in our deeply liquid silver futures and options marketplace," said Harriet Hunnable, Managing Director Global Metals. "With strong demand for precious metals in China, India, and the U.S., we expect to see growing interest in this product which offers additional flexibility for individual investors and other market participants looking to hedge against economic uncertainty."
This launch comes at a time when CME Group's Silver futures and options average daily trading volumes year-to-date 2013 are up to 69,878 which is an increase of 17% on over the comparable period in 2012. Open Interest is at 378,589 contracts.
At one-fifth the size of the existing 5,000-oz. Silver futures contract, this new contract will be conveniently sized for market participants seeking to trade physical silver in smaller increments. It is fully fungible with the full-sized Silver futures contract, which means that customers who accumulate five warehouse depository receipts of the 1,000-oz. contract can convert them into one 5,000-oz. Silver futures contract.
These contracts are listed by and subject to the rules of COMEX.
