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The New York Board of Trade (NYBOT), a wholly-owned subsidiary of IntercontinentalExchange (NYSE: ICE), announced today that, effective Friday, September 28, 2007, a new Robusta Coffee futures contract will begin trading on ICE’s electronic platform. The new contract will be listed alongside the world’s largest coffee futures contract, NYBOT’s Coffee “C” Arabica futures contract. Trading of inter-commodity spreads between the Robusta and Arabica futures contracts will be available on a single platform.
“The Robusta futures contract leverages the recognized strength and integrity of our coffee grading and physical delivery capabilities. We are pleased to respond to the demand for the Robusta contract design, as well as the opportunity to develop a liquid options market,” said Thomas Farley, NYBOT President and COO. “Our global coffee trade customers were integrally involved in developing the terms of the new contract, and we look forward to enhancing the set of hedging tools available via the ICE platform.”
The Robusta Coffee futures contract will trade from 1:30 a.m. to 3:15 p.m. ET. The contract will have a delivery cycle of March, May, July, September and December and will allow for physical delivery of exchange-graded product of up to 30 origins in any of four delivery points in the U.S. and five delivery points in Europe. Grading will be performed by exchange-licensed graders and will include a cupping component. The contract size is 37,500 pounds and will be priced in U.S. cents per pound. Options on the new Robusta futures contract will begin trading on Monday, October 1, 2007. Options will trade on the NYBOT trading floor only and will be in the same trading ring as the Coffee “C” options, providing access to an existing deep and competitive pool of market makers.
