CHICAGO, Sept. 18,
2023 /PRNewswire/ -- CME Group, the world's
leading derivatives marketplace, today announced that it will
launch Cobalt Hydroxide futures on October
23, pending all relevant regulatory reviews. This is the
fourth battery metals futures contract CME Group has launched in
response to evolving hedging needs within the rapidly growing
electric vehicle space.
"CME Group is pleased to offer market participants in the global
battery supply chain more hedging granularity with a cobalt
hydroxide contract," said Jin Chang
Hennig, Managing Director and Global Head of Metals at CME
Group. "As demand continues to grow, it has become more important
to manage the price risk between global, standard-grade cobalt
metal and the local hydroxide price delivered into China, where hydroxide is refined into
battery-grade material."
Cobalt Hydroxide futures will be financially-settled based on
the Fastmarkets' cobalt hydroxide price assessment.
Raju Daswani, CEO of Fastmarkets,
added, "Evolving battery raw material markets and electric vehicle
growth continue to drive demand for hedging mechanisms throughout
the cobalt supply chain. The launch of the CME Group cobalt
hydroxide futures contract, based on Fastmarkets' cobalt hydroxide
price, ensures market participants have another tool to mitigate
risk as these markets develop."
Cobalt Hydroxide futures are complementary to Cobalt Metal
futures, which have become the global benchmark for Cobalt prices
since launching in December 2020.
Trading in Cobalt Metal futures has already surpassed its total
trading volume in 2022, with over 21,000 contracts traded
year-to-date. Open interest in Cobalt Metal futures has also
quadrupled over the last year, growing from approximately 5,000
contracts in September of last year to 20,607 contracts, equivalent
to over 20,600 metric tons, on September 5,
2023.
The new contract will be listed by and subject to the rules
of COMEX under the product name Cobalt Hydroxide CIF China
(Fastmarkets) futures. For full contract specs, or for more
information on CME Group's battery metals products, please visit
here.
As the world's leading derivatives marketplace, CME Group
(www.cmegroup.com) enables clients to trade futures, options, cash
and OTC markets, optimize portfolios, and analyze data – empowering
market participants worldwide to efficiently manage risk and
capture opportunities. CME Group exchanges offer the widest range
of global benchmark products across all major asset classes based
on interest rates, equity indexes, foreign
exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe
LTD and EBS Group LTD, respectively. The S&P 500 Index is a
product of S&P Dow Jones Indices LLC ("S&P DJI").
"S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are
trademarks of Standard & Poor's Financial Services LLC; Dow
Jones®, DJIA® and Dow Jones Industrial Average are service and/or
trademarks of Dow Jones Trademark Holdings LLC. These trademarks
have been licensed for use by Chicago Mercantile Exchange Inc.
Futures contracts based on the S&P 500 Index are not sponsored,
endorsed, marketed, or promoted by S&P DJI, and S&P DJI
makes no representation regarding the advisability of investing in
such products. All other trademarks are the property of their
respective owners.
CME-G
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SOURCE CME Group