CME Group, the world's largest and most diverse derivatives exchange, today announced that it 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 October 19 for the October 20 trade date.
The contract will be financially settled against an index developed by CRU International (http://www.crugroup.com/) and reflects an assessment of the prevailing market prices for U.S. 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. More details on the contract specifications can be found at http://www.nymex.com/steel.
"In these uncertain financial markets, an exchange traded contract will provide customers with market transparency and integrity," said 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."
