CME Group to introduce new Aluminium European Premium Futures this September

UNITED STATES September 07 2015 9:30 AM

LONDON (Scrap Register): CME Group has announced that it will expand its base metals offering with the introduction of a new Aluminium European Premium Duty-Unpaid (Metal Bulletin) futures contract to begin trading on 21 September, 2015.

Pending relevant regulatory review periods, the new contract will be available for trading on CME Globex and for submission for clearing through CME ClearPort, and will be listed with and subject to the rules and regulations of COMEX.

“Our new contract will be the first viable exchange-traded futures product to enable customers and market participants to hedge their exposure to the European aluminium premium,” said Young-Jin Chang, CME Group Senior Director of Metals Products.

“This is a continuation of our commitment to engage with customers and market participants in the aluminium industry around the globe. We continue to work closely with the industry to provide them with innovative new solutions to manage aluminium premium volatility, which has reached record levels during the last three years,” Chang added.

These new contracts will complement CME Group's existing suite of aluminium risk management tools, including its Aluminum MW U.S. Transaction Premium futures and physically delivered Aluminum futures. Industry participation in the Aluminum Midwest Premium contract has steadily increased, trading the equivalent of more than 650,000 metric tons since their launch in April 2012 and reaching a record 19,335 contracts open interest on 1 September 2015.

Aluminum futures, which were introduced in May of last year, serve as a reference price for the North American aluminium industry and allow participants to better manage their price risk.

The Aluminium European Premium futures contract will be 25 metric tons in size and will be financially settled against the Metal Bulletin assessment of aluminium spot price transactions in Europe.