CME Plans 1,000-Ounce Silver Futures Contract Starting in June
Stock Chart for CME Group Inc/IL (CME)
CME Group Inc. (CME), the owner of the world’s biggest futures exchange, is betting that increased demand for silver will drive trading for a smaller version of its two futures contracts linked to the metal.
The new contract will allow for physical delivery of 1,000 ounces starting in June, Chicago-based CME said today in a statement. The company’s Comex unit in New York already offers a 5,000-ounce contract that has physical delivery and a 2,500- ounce contract settled in cash.
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“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,” Robert Ray, a managing director, said in the statement.
A 1,000-ounce contract is traded on NYSE Liffe U.S., a competing exchange.
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