CME Group to launch Aluminum A380 Alloy Futures in June

UNITED STATES May 17 2016 10:45 AM

CHICAGO (Scrap Register): CME Group has expand its base metals offering with the introduction of a new Aluminum A380 Alloy (S&P Global Platts) futures contract to begin trading on June 6, 2016. 

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

“This new contract will provide our customers and market participants with an effective and transparent solution for hedging aluminum alloy price risk,” said Young-Jin Chang, CME Group Executive Director of Metals Products. “Aluminum A380 Alloy futures will complement our diverse suite of physically delivered and financially settled aluminum futures and responds to commercial customer demand for a North American exchange-cleared hedging tool for managing their aluminum alloy risk.”

“We've seen growing demand for a North American aluminum alloy risk management tool from customers who prefer to hedge using flexible exchange-listed futures contracts,” said Michael Camacho, JPMorgan Chase & Co. Head of Global Commodities. “CME Group's new aluminum alloy futures contract will provide a much-needed solution to the market at a time when a significant number of base metals customers are shifting the way they hedge their physical material.”

This new Aluminum A380 Alloy (S&P Global Platts) futures contract will complement CME Group's existing suite of aluminum risk management tools, including its Aluminum MW U.S. Transaction Premium Platts futures, Aluminium European Premium Duty-Paid (Metal Bulletin) futures, Aluminium European Premium Duty-Unpaid (Metal Bulletin) futures, Aluminum Japan Premium (Platts) futures, and physically delivered Aluminum futures. 

Aluminum A380 Alloy (S&P Global Platts) futures will be 44,092 pounds (equivalent to 20 metric tons) in size and will be financially settled against the S&P Global Platts assessment of the MW US A380 Alloy.