CME Group, the world's leading derivatives marketplace, today announced that it will launch an option contract on its physically-delivered Aluminum futures on May 23, pending regulatory review.
"Our new option contract is the latest example of CME Group's decade-long track record of helping the aluminum community to manage risk as their needs evolve," said
Jin Chang, Global Head of Metals at CME Group. "Clients are increasingly turning to our Aluminum markets, with a record 4,888 Aluminum futures contracts traded on April 19 and average daily volume in April currently around 1,300 contracts, up over 100% from last year. We look forward to continuing to work with our clients and the industry to provide enhanced solutions across this important global market."
"We welcome the introduction of this new Aluminum Option contract and CME Group's efforts to enhance risk management capabilities in base metals," said
Rob Sorrentino, President at Eckhardt Trading. "The new contract provides even more flexibility to manage adverse price movements and transparent price discovery, which benefits the entire base metals industry at this critical time."
"We applaud CME Group's continued expansion in base metals. With ongoing uncertainty in global metals markets, this new contract will allow us to offer liquidity to those looking to manage price risk and provide another important hedging tool to the broader aluminum community," said Gareth Upe, Managing Director at UPE Trading. "We look forward to supporting CME Group's new Aluminum Option contract."
The new Aluminum Option contract will be listed by and subject to the rules of COMEX. For more information, please visit here.
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