The London Stock Exchange Group Plc is considering offering milling wheat futures as it eyes a range of possible new commodity products.
“I wouldn’t go so far as plans, it’s a consideration at this moment,” spokesman Tom Gilbert said. He confirmed comments by LSE Chief Executive Officer Xavier Rolet in the Wall Street Journal that the London exchange may start a rival to Europe’s benchmark wheat future.
LSE’s Borsa Italiana in January introduced a futures contract for durum wheat, the hard variety used to make couscous and pasta. Open interest for durum wheat futures is 17 contracts, compared with 193,812 contracts for NYSE Liffe’s milling wheat futures traded in Paris.
The global benchmark for wheat prices is the soft-red winter wheat contract traded on the Chicago Board of Trade.