CME Group (NASDAQ:CME) announced on Thursday the June launch of a new physically delivered Silver (1,000 oz.) futures contract. This will be listed with, and subject to, the rules and regulations of COMEX.
Robert Ray, CME Group Managing Director EMEA said in a press release,?”We’re introducing our new 1,000-oz. silver futures contract in response to demand from our customers, who are increasingly looking for cost-effective ways to manage risk. The smaller size will provide market participants with greater flexibility to manage their silver price risk, and serve as a more cost-effective tool for individual investors or others looking to hedge against economic uncertainty. This is the first contract of its size that will be fully fungible and deliverable against our existing benchmark silver futures contract.”
The new contract is one-fifth the size of the existing 5,000-oz.?Silver?futures one and it will be sized for market participants looking to trade physical silver in smaller increments. It will be fully fungible with the full-sized Silver futures contract.
The contract will be available on the CME Globex electronic trading platform and for over-the-counter (OTC) clearing through CME ClearPort as well as open outcry on New York’s trading floor beginning with the September 2013 contract month.