CME Group today announced that it will launch a Russian Export Blend Crude Oil (REBCO) financial futures contract, on the CME Globex(R) electronic trading platform and the ClearPort(R) electronic clearing and trading platform, beginning November 23 for trade date November 24.
The contract (commodity code: R2) will be financially settled based on Argus Media's Urals FOB Primorsk assessment. It will be listed for up to 48 consecutive months, beginning with the January 2009 contract.
Showing posts with label CME. Show all posts
Showing posts with label CME. Show all posts
Monday, 10 November 2008
Wednesday, 29 October 2008
Trading Terms
Xforex
Currency trading firm
EIN
Distributor of digital news
NYFIX
Electronic trading solutions vendor. NYFIX Marketplace is a global community of trading counterparties utilizing innovative services that optimize the business of trading.
NYFIX Marketplace
NYFIX Marketplace is a global community of trading counterparties utilizing innovative services that optimize the business of trading. NYFIX Millennium(R) provides the NYFIX Marketplace with new methods of accessing liquidity
Ambit
Banking solution suite for retail, commercial and private banks.
CME
Formerly Chicago Mercantile Exchange. Largest derivatives exchange, built through mergers with CBOT and NYMEX.
BNP Paribus
This French-based banking group holds key positions in three major segments: Corporate and Investment Banking, Asset Management & Services and Retail Banking. Present throughout Europe in all of its business lines, the bank's two domestic markets in retail banking are France and Italy. BNP Paribas also has a significant presence in the United States and strong positions in Asia and the emerging markets.
Geneos Wealth Management
Broker/dealer headquartered in Denver, CO, providing financial and estate-planning services through a select network of registered representatives.
Currency trading firm
EIN
Distributor of digital news
NYFIX
Electronic trading solutions vendor. NYFIX Marketplace is a global community of trading counterparties utilizing innovative services that optimize the business of trading.
NYFIX Marketplace
NYFIX Marketplace is a global community of trading counterparties utilizing innovative services that optimize the business of trading. NYFIX Millennium(R) provides the NYFIX Marketplace with new methods of accessing liquidity
Ambit
Banking solution suite for retail, commercial and private banks.
CME
Formerly Chicago Mercantile Exchange. Largest derivatives exchange, built through mergers with CBOT and NYMEX.
BNP Paribus
This French-based banking group holds key positions in three major segments: Corporate and Investment Banking, Asset Management & Services and Retail Banking. Present throughout Europe in all of its business lines, the bank's two domestic markets in retail banking are France and Italy. BNP Paribas also has a significant presence in the United States and strong positions in Asia and the emerging markets.
Geneos Wealth Management
Broker/dealer headquartered in Denver, CO, providing financial and estate-planning services through a select network of registered representatives.
CME Revenues Increase 20% Earnings Down 16%
CME Group Inc. (NASDAQ:CME) today reported total GAAP revenues increased 20 percent to $681 million, and GAAP operating income increased 22 percent to $421 million. Net income for the third quarter was $169 million, down 16 percent versus the prior year due primarily to an income tax adjustment and other non-core items. Diluted earnings per share on a GAAP basis were $2.81. The 2008 GAAP results reflect the operations of both Chicago Mercantile Exchange (CME) and Board of Trade of the City of Chicago (CBOT), as well as the results of NYMEX Holdings, Inc. (NYMEX) after August 22, 2008 when the acquisition closed.
Pro forma non-GAAP diluted earnings per share in the third quarter were $4.13. All pro forma results reflect the operations of both CME Group Inc. and NYMEX, as if they were combined for all periods reported. Additionally, third-quarter 2008 pro forma non-GAAP results exclude a net impact of $76 million of merger-related and other items, which are listed in detail in Table 1. Total revenues increased six percent to $787 million and total operating expenses decreased three percent compared with the same period last year at $269 million. A strong rate per contract and continued focus on expense discipline helped the company reach third-quarter operating income of $518 million, an increase of 11 percent from $468 million for the year-ago period, and its second highest pro forma operating margin ever, at 66 percent. Operating margin is defined as operating income as a percentage of total revenues. Pro forma net income was $278 million for third-quarter 2008. Pro forma measures do not replace and are not a substitute for GAAP financial results. They are provided to improve overall understanding of current financial performance and to provide a meaningful comparison with prior periods. A full reconciliation of these pro forma results is included with the attached financial statements.
"CME Group's record quarterly volumes in our E-mini and FX complexes in the third quarter highlight the diversity and strength of our product base," said CME Group Executive Chairman Terry Duffy. "We are focused on continued innovation across our product lines and our technology and to that end are very excited about the strategic opportunities offered by the completion of the NYMEX acquisition. NYMEX's energy and metals products, as well as the ClearPort over-the-counter clearing platform, provide additional ways for our customers to manage risk during even the most challenging market conditions. By combining these offerings with the extensive distribution and strong international presence established by CME, we look forward to ongoing growth in these globally significant products."
Pro forma non-GAAP diluted earnings per share in the third quarter were $4.13. All pro forma results reflect the operations of both CME Group Inc. and NYMEX, as if they were combined for all periods reported. Additionally, third-quarter 2008 pro forma non-GAAP results exclude a net impact of $76 million of merger-related and other items, which are listed in detail in Table 1. Total revenues increased six percent to $787 million and total operating expenses decreased three percent compared with the same period last year at $269 million. A strong rate per contract and continued focus on expense discipline helped the company reach third-quarter operating income of $518 million, an increase of 11 percent from $468 million for the year-ago period, and its second highest pro forma operating margin ever, at 66 percent. Operating margin is defined as operating income as a percentage of total revenues. Pro forma net income was $278 million for third-quarter 2008. Pro forma measures do not replace and are not a substitute for GAAP financial results. They are provided to improve overall understanding of current financial performance and to provide a meaningful comparison with prior periods. A full reconciliation of these pro forma results is included with the attached financial statements.
"CME Group's record quarterly volumes in our E-mini and FX complexes in the third quarter highlight the diversity and strength of our product base," said CME Group Executive Chairman Terry Duffy. "We are focused on continued innovation across our product lines and our technology and to that end are very excited about the strategic opportunities offered by the completion of the NYMEX acquisition. NYMEX's energy and metals products, as well as the ClearPort over-the-counter clearing platform, provide additional ways for our customers to manage risk during even the most challenging market conditions. By combining these offerings with the extensive distribution and strong international presence established by CME, we look forward to ongoing growth in these globally significant products."
Tuesday, 28 October 2008
CME Group, today announced that it will launch European style options on the European gasoil bullet swaps futures contract and average price options on the European gasoil calendar swaps futures contract, on ClearPort(R) and the New York energy trading floor, beginning November 2 for trade date November 3.
The European style gasoil options contract (commodity code: F8) will be listed for 36 consecutive months, beginning with the November 2008 contract. The bullet swap contract expires one day before the gasoil futures contract.
The average price gasoil options contract (commodity code: F7) will be listed for the balance of the current year, plus each calendar month for the following two years.
Both contracts will be 1,000 metric tons in size with a minimum price fluctuation of $0.01 per metric ton. There will be 20 strike prices in intervals of $5.00 per metric tons above and below the at-the-money strike price.
The European style gasoil options contract (commodity code: F8) will be listed for 36 consecutive months, beginning with the November 2008 contract. The bullet swap contract expires one day before the gasoil futures contract.
The average price gasoil options contract (commodity code: F7) will be listed for the balance of the current year, plus each calendar month for the following two years.
Both contracts will be 1,000 metric tons in size with a minimum price fluctuation of $0.01 per metric ton. There will be 20 strike prices in intervals of $5.00 per metric tons above and below the at-the-money strike price.
CME Group Announces Gas And Plastics Futures
CME Group, today announced that it will launch five new natural gas liquids swaps futures contracts and two plastics futures contracts on ClearPort(R), beginning November 2 for trade date November 3.
The natural gas liquids swaps contracts and their commodity codes are: Conway propane (OPIS) (W1); Mont Belvieu natural gasoline (OPIS) (W3); Mont Belvieu ethane (OPIS) (W8); Mont Belvieu isobutene (OPIS) (Y2); and Mont Belvieu normal butane (OPIS) (Z2). These contracts will be cash-settled using OPIS assessments. They will be listed for 36 consecutive months, beginning with the November 2008 contract, and will be 42,000 gallons in size.
The plastics futures contracts and their commodity codes are: polypropylene (P1) and polyethylene (P6). The contracts will be listed for 24 consecutive months, beginning with the January 2009 contract, and will be 47,000 pounds in size. They will feature physical delivery in Houston.
For more information, please visit http://www.nymex.com/.
The natural gas liquids swaps contracts and their commodity codes are: Conway propane (OPIS) (W1); Mont Belvieu natural gasoline (OPIS) (W3); Mont Belvieu ethane (OPIS) (W8); Mont Belvieu isobutene (OPIS) (Y2); and Mont Belvieu normal butane (OPIS) (Z2). These contracts will be cash-settled using OPIS assessments. They will be listed for 36 consecutive months, beginning with the November 2008 contract, and will be 42,000 gallons in size.
The plastics futures contracts and their commodity codes are: polypropylene (P1) and polyethylene (P6). The contracts will be listed for 24 consecutive months, beginning with the January 2009 contract, and will be 47,000 pounds in size. They will feature physical delivery in Houston.
For more information, please visit http://www.nymex.com/.
Wednesday, 22 October 2008
CME Expands With Turkish Lira
CME Group will augment its portfolio of emerging markets currencies products with the introduction of Turkish lira futures contracts denominated in both U.S. dollars (TRY/USD) and in euros (TRY/EUR). The new contracts will trade exclusively on the CME Globex(R) electronic trading platform and are currently scheduled to begin trading in the first quarter of January, 2009.
"We see emerging markets currencies, such as the Turkish lira, as another component in growing our FX business around the world. As Turkey continues its development within the global economy, the lira contract will be a key plank in our growing emerging markets currency products range," said Derek Sammann, CME Group Managing Director of FX Products. "Overall CME Group FX volumes achieved new record highs in September, averaging 835,000 contracts per day, up 32 percent on September 2007, which was a record average daily notional value of $111 billion, up 41 percent."
In the last 12 months, volumes in CME Group's top four emerging markets currencies -- the Russian ruble, Mexican peso, South African rand and Chinese renminbi -- have grown an average of 152 percent. Individually, volumes in the renminbi rose 234 percent, the ruble 178 percent, the rand 141 percent and the peso 56 percent.
CME Group Turkish lira futures are designed to serve global customers by expanding liquidity in this growing currency.
"We see emerging markets currencies, such as the Turkish lira, as another component in growing our FX business around the world. As Turkey continues its development within the global economy, the lira contract will be a key plank in our growing emerging markets currency products range," said Derek Sammann, CME Group Managing Director of FX Products. "Overall CME Group FX volumes achieved new record highs in September, averaging 835,000 contracts per day, up 32 percent on September 2007, which was a record average daily notional value of $111 billion, up 41 percent."
In the last 12 months, volumes in CME Group's top four emerging markets currencies -- the Russian ruble, Mexican peso, South African rand and Chinese renminbi -- have grown an average of 152 percent. Individually, volumes in the renminbi rose 234 percent, the ruble 178 percent, the rand 141 percent and the peso 56 percent.
CME Group Turkish lira futures are designed to serve global customers by expanding liquidity in this growing currency.
Friday, 10 October 2008
CME and Reuters to Close FXMarketSpace
CME Group and Thomson Reuters today announced that they will take steps necessary to close FXMarketSpace, the 50/50 joint venture company they introduced in May 2006. All trading on the platform will be suspended at the close of business on 17 October, 2008. During the coming months, CME Group and Thomson Reuters will work closely with FXMarketSpace to ensure an orderly wind down of existing business operations.
Both CME Group's FX futures business and Thomson Reuters FX Spot Matching services continue to reflect strong growth in their respective product lines. CME Group and Thomson Reuters remain committed to offering innovative solutions to the rapidly-growing OTC FX market, and the two companies will explore working together to pursue clearing and operational efficiencies for their customers.
Both CME Group's FX futures business and Thomson Reuters FX Spot Matching services continue to reflect strong growth in their respective product lines. CME Group and Thomson Reuters remain committed to offering innovative solutions to the rapidly-growing OTC FX market, and the two companies will explore working together to pursue clearing and operational efficiencies for their customers.
CME Gas Trading
CME Group is launching 18 new natural gas basis, index and swing swaps futures contracts on ClearPort(R), beginning on October 19 for trade date October 20.
The new futures contracts and their commodity codes are: NGPL STX natural gas basis swap (T5); Algonquin Citygate natural gas basis swap (B4); TCO natural gas index swap (Q1); TETCO STX natural gas index swap (Q2); Tennessee Zone 0 natural gas index swap (Q4); Transco Zone 3 natural gas index swap (Y6); Tennessee 500 leg natural gas index swap (Y7); MichCon natural gas index swap (Y8); CIG Rockies natural gas index swap (Z8); TCO natural gas swing swap (A1); TETCO STX natural gas swing swap (T2); Tennessee Zone 0 natural gas swing swap (T4); Malin natural gas swing swap (W9); Stanfield natural gas swing swap (Q3); Transco Zone 3 natural gas swing swap (T6); Tennessee 500 leg natural gas swing swap (T7); MichCon natural gas swing swap (T8); and CIG Rockies natural gas swing swap (U8).
The basis and index swap futures contracts will be listed for 36 consecutive months, and the swing swap futures contracts will be listed for two consecutive months. The first listed month for all contracts will be November 2008.
The contract will be 2,500 mmBtus (10,000 million British thermal units) in size with a minimum price fluctuation of $0.0025 per mmBtu. For more information, please visit http://www.nymex.com/.
The new futures contracts and their commodity codes are: NGPL STX natural gas basis swap (T5); Algonquin Citygate natural gas basis swap (B4); TCO natural gas index swap (Q1); TETCO STX natural gas index swap (Q2); Tennessee Zone 0 natural gas index swap (Q4); Transco Zone 3 natural gas index swap (Y6); Tennessee 500 leg natural gas index swap (Y7); MichCon natural gas index swap (Y8); CIG Rockies natural gas index swap (Z8); TCO natural gas swing swap (A1); TETCO STX natural gas swing swap (T2); Tennessee Zone 0 natural gas swing swap (T4); Malin natural gas swing swap (W9); Stanfield natural gas swing swap (Q3); Transco Zone 3 natural gas swing swap (T6); Tennessee 500 leg natural gas swing swap (T7); MichCon natural gas swing swap (T8); and CIG Rockies natural gas swing swap (U8).
The basis and index swap futures contracts will be listed for 36 consecutive months, and the swing swap futures contracts will be listed for two consecutive months. The first listed month for all contracts will be November 2008.
The contract will be 2,500 mmBtus (10,000 million British thermal units) in size with a minimum price fluctuation of $0.0025 per mmBtu. For more information, please visit http://www.nymex.com/.
Tuesday, 7 October 2008
CME Group and Citadel Claim First Central Counterparty Clearing Facility
CME Group and Citadel Investment Group, L.L.C., a leading alternative investment and technology firm, today announced they have executed a non-binding term sheet to launch a joint venture company within 30 days, which will be the first electronic trading platform that is fully integrated with a central counterparty clearing facility for Credit Default Swaps (CDS). CME Clearing, the world's largest derivatives clearing house, will be the central counterparty for this solution.
The joint venture will operate as an independent organization with its own board of directors and management team. CME Group and Citadel have invited major CDS market participants to join as Founding Members by allocating up to 30 percent of the equity in the venture, and by offering certain market maker privileges to such Founding Members. The equity and market maker incentives are designed to encourage participants to both migrate existing positions and to trade new CDS contracts on the platform.
As a fully integrated trading and clearing solution, the joint venture will provide the following benefits to market participants:
-- Enhanced liquidity through standardized contracts with fixed coupons for all the leading CDS indices and their underlying single-name components, with OTC market conventions, including credit event procedures;
-- CME Group's well-established clearing, settlement and risk management capabilities with Citadel's state-of-the-art technology for price discovery, matching engine, and risk management analytics;
-- Facilities to convert existing bilateral trades to standardized contracts and straight through processing into CME Clearing, reducing bilateral credit risks, outstanding notional balances and capital requirements while providing more flexibility for trading in and out of existing positions; and,
-- The joint venture has entered into preliminary licensing discussions with Markit, a leading financial information services company that owns the most widely traded CDS indices and Markit RED, the industry-standard CDS identifiers.
In today's environment, effective risk management is more important than ever as investors seek transparent, secure and liquid market alternatives, particularly for credit default swaps," said CME Group Executive Chairman Terry Duffy. "Combining Citadel's leading CDS technology with the renowned safety and soundness of CME Clearing, this joint venture is a best-of-both-worlds solution that will reduce much of the systematic risk inherent in the current CDS market structure."
"It is imperative to bring stability and transparency to the CDS market," said Ken Griffin, Founder and CEO of Citadel Investment Group. "This venture is a comprehensive, state-of-the-art solution that addresses today's immediate concerns and provides tremendous opportunity for market users into the future."
"Recent market events highlight the urgent need to reduce counterparty credit risks in the CDS market as well as the other over-the-counter markets. Our innovative new partnership with Citadel, and our invitation to leading market participants to join this first-ever integrated solution, is a key turning point in improving the functioning of these important markets," said Craig Donohue, Chief Executive Officer of CME Group. "This platform provides an important opportunity for market participants to demonstrate to customers and regulators alike how these markets can be better organized to meet legitimate hedging and trading needs while reducing operational and credit risks that have grown unchecked in the OTC market."
The joint venture will operate as an independent organization with its own board of directors and management team. CME Group and Citadel have invited major CDS market participants to join as Founding Members by allocating up to 30 percent of the equity in the venture, and by offering certain market maker privileges to such Founding Members. The equity and market maker incentives are designed to encourage participants to both migrate existing positions and to trade new CDS contracts on the platform.
As a fully integrated trading and clearing solution, the joint venture will provide the following benefits to market participants:
-- Enhanced liquidity through standardized contracts with fixed coupons for all the leading CDS indices and their underlying single-name components, with OTC market conventions, including credit event procedures;
-- CME Group's well-established clearing, settlement and risk management capabilities with Citadel's state-of-the-art technology for price discovery, matching engine, and risk management analytics;
-- Facilities to convert existing bilateral trades to standardized contracts and straight through processing into CME Clearing, reducing bilateral credit risks, outstanding notional balances and capital requirements while providing more flexibility for trading in and out of existing positions; and,
-- The joint venture has entered into preliminary licensing discussions with Markit, a leading financial information services company that owns the most widely traded CDS indices and Markit RED, the industry-standard CDS identifiers.
In today's environment, effective risk management is more important than ever as investors seek transparent, secure and liquid market alternatives, particularly for credit default swaps," said CME Group Executive Chairman Terry Duffy. "Combining Citadel's leading CDS technology with the renowned safety and soundness of CME Clearing, this joint venture is a best-of-both-worlds solution that will reduce much of the systematic risk inherent in the current CDS market structure."
"It is imperative to bring stability and transparency to the CDS market," said Ken Griffin, Founder and CEO of Citadel Investment Group. "This venture is a comprehensive, state-of-the-art solution that addresses today's immediate concerns and provides tremendous opportunity for market users into the future."
"Recent market events highlight the urgent need to reduce counterparty credit risks in the CDS market as well as the other over-the-counter markets. Our innovative new partnership with Citadel, and our invitation to leading market participants to join this first-ever integrated solution, is a key turning point in improving the functioning of these important markets," said Craig Donohue, Chief Executive Officer of CME Group. "This platform provides an important opportunity for market participants to demonstrate to customers and regulators alike how these markets can be better organized to meet legitimate hedging and trading needs while reducing operational and credit risks that have grown unchecked in the OTC market."
Monday, 6 October 2008
CME E-quotes New Version Launched
CME Group has launched the latest version of CME E-quotes(TM), a premiere real-time streaming market data application offering quotes, charting, advanced analytics and news on CME Group traded products.
E-quotes will enable users to access prices for all CME Group listings, including interest rates, equity indexes, foreign currencies, commodities, energy, metals and alternative investments. In addition, there is also access to prices for products listed on the Minneapolis Grain Exchange and the Kansas Board of Trade, which are available for electronic trading on CME Globex(R).
"CME Group partnered with Chicago-based Computer Voice Systems Inc. to transform their data system into a platform that will provide market participants a sophisticated and intuitive tool to reliably engage the latest news, analytics and quotes," said Brian McElligott, CME Group Director of Information Products Management. "This is another example of our continued focus on providing our customers with the latest market data technology at a significant value to view and analyze our markets and to better reach more informed decisions."
The E-quote Basic, Advanced and Professional editions enable users to track the markets with customizable features including quote monitors, market depth, advanced charts, time and sales and more. E-quotes supports Simplified Chinese, Russian and Japanese languages and is expandable to add additional languages.
Features of E-quotes include:
-- Free bundled delayed quote/chart access to all CME Group exchanges
-- Bundled Dow Jones News Select news in E-quotes Advanced and Professional editions
-- Cutting edge technology and a robust, growing feature set
-- Advanced edition is packed full of top analytics and powerful quote display features plus bundled news and free agricultural weather maps
-- Professional edition is everything obtained in Advanced plus sophisticated new quote views and options analytics
-- All new Wireless edition to track the markets on the go; around the world
-- The best market combination of sophistication, usability, performance and price for accessing CME Group products
E-quotes will enable users to access prices for all CME Group listings, including interest rates, equity indexes, foreign currencies, commodities, energy, metals and alternative investments. In addition, there is also access to prices for products listed on the Minneapolis Grain Exchange and the Kansas Board of Trade, which are available for electronic trading on CME Globex(R).
"CME Group partnered with Chicago-based Computer Voice Systems Inc. to transform their data system into a platform that will provide market participants a sophisticated and intuitive tool to reliably engage the latest news, analytics and quotes," said Brian McElligott, CME Group Director of Information Products Management. "This is another example of our continued focus on providing our customers with the latest market data technology at a significant value to view and analyze our markets and to better reach more informed decisions."
The E-quote Basic, Advanced and Professional editions enable users to track the markets with customizable features including quote monitors, market depth, advanced charts, time and sales and more. E-quotes supports Simplified Chinese, Russian and Japanese languages and is expandable to add additional languages.
Features of E-quotes include:
-- Free bundled delayed quote/chart access to all CME Group exchanges
-- Bundled Dow Jones News Select news in E-quotes Advanced and Professional editions
-- Cutting edge technology and a robust, growing feature set
-- Advanced edition is packed full of top analytics and powerful quote display features plus bundled news and free agricultural weather maps
-- Professional edition is everything obtained in Advanced plus sophisticated new quote views and options analytics
-- All new Wireless edition to track the markets on the go; around the world
-- The best market combination of sophistication, usability, performance and price for accessing CME Group products
Wednesday, 17 September 2008
CME Statement on AIG
"CME Group took an emergency action today to facilitate the reduction of the positions of American International Group, Inc. (AIG) and its subsidiaries and to protect the orderly functioning of the market. The agreed-upon order permits the limited execution of block trades by AIG in certain CME and CBOT commodity futures products, including Soybeans, Soybean Oil, Corn, Wheat, Live Cattle and Lean Hogs, for the purpose of liquidating a portion of AIG's open positions. A block trade is a privately negotiated transaction between eligible contract participants that is executed outside of the public auction market. The order is effective through Wednesday, September 17, 2008."
Tuesday, 16 September 2008
CME Before Senate Energy Hearing
CME Group Board Member and former President of the New York Mercantile Exchange James E. Newsome will appear before a Senate energy subcommittee on Tuesday to discuss energy markets and the significance of a recent Commodity Futures Trading Commission (CFTC) report on market participants.
Newsome, who joined the CME Group board of directors in August when CME Group completed the purchase of NYMEX, is delivering testimony on behalf of CME Group Executive Chairman Terry Duffy. The staff report, "Commodity Swap Dealers and Index Traders with Commission Recommendations," was released last week by the CFTC.
"This publicly available data has been relatively consistent over time in demonstrating that speculators in crude oil futures contracts have been relatively balanced as between buy and sell positions in the market, so the market is moving on fundamentals, not speculators," Duffy said. "The CFTC report also recommends improvements to its enforcement capabilities and the expansion of the mandatory reporting of energy trading and position information to the Commission, which we strongly support as we share the view of regulators and legislators on the need for greater transparency."
The hearing is scheduled for 2:30 p.m. Tuesday in the Dirksen Senate Office Building. The Energy Subcommittee of the Senate Energy and Natural Resources Committee is hosting the session. To view the testimony, please go to http://www.cmegroup.com/commodityprices.
Newsome, who joined the CME Group board of directors in August when CME Group completed the purchase of NYMEX, is delivering testimony on behalf of CME Group Executive Chairman Terry Duffy. The staff report, "Commodity Swap Dealers and Index Traders with Commission Recommendations," was released last week by the CFTC.
"This publicly available data has been relatively consistent over time in demonstrating that speculators in crude oil futures contracts have been relatively balanced as between buy and sell positions in the market, so the market is moving on fundamentals, not speculators," Duffy said. "The CFTC report also recommends improvements to its enforcement capabilities and the expansion of the mandatory reporting of energy trading and position information to the Commission, which we strongly support as we share the view of regulators and legislators on the need for greater transparency."
The hearing is scheduled for 2:30 p.m. Tuesday in the Dirksen Senate Office Building. The Energy Subcommittee of the Senate Energy and Natural Resources Committee is hosting the session. To view the testimony, please go to http://www.cmegroup.com/commodityprices.
Friday, 12 September 2008
CME Expands International Team
CME Group, has expanded its international team by creating two new positions designed to support the company's global business development.
Thomas Krabbe, 40, Director, Corporate Finance
Krabbe will support CME Group's international partnerships and lead the company's global growth prioritization and execution processes. He also will be responsible for working with the finance, accounting and tax areas to ensure cross-departmental support for CME Group's international initiatives. He will be based in Chicago and continues to report to Sam Coady, Director, Corporate Finance.
Adrienne Seaman, 37, Director, Commercial and Licensing Counsel
Seaman will be responsible for providing ongoing legal support for CME Group's London-based subsidiaries -- CMA and Swapstream -- and working with other legal team members on international legal matters impacting CME Group. She will be based in London and will report to Kathleen Cronin, Managing Director, General Counsel and Corporate Secretary.
Thomas Krabbe, 40, Director, Corporate Finance
Krabbe will support CME Group's international partnerships and lead the company's global growth prioritization and execution processes. He also will be responsible for working with the finance, accounting and tax areas to ensure cross-departmental support for CME Group's international initiatives. He will be based in Chicago and continues to report to Sam Coady, Director, Corporate Finance.
Adrienne Seaman, 37, Director, Commercial and Licensing Counsel
Seaman will be responsible for providing ongoing legal support for CME Group's London-based subsidiaries -- CMA and Swapstream -- and working with other legal team members on international legal matters impacting CME Group. She will be based in London and will report to Kathleen Cronin, Managing Director, General Counsel and Corporate Secretary.
Thursday, 11 September 2008
CME Group Response to CFTC Swap Report
CME Group, issued the following statement in response to the Commodity Futures Trading Commission (CFTC) report on Swap Dealers and Index Traders:
"We commend the Commission and its staff's hard work on this report to ensure that exchange-traded and over-the-counter (OTC) derivatives markets in energy and agriculture products are functioning properly and to ensure that regulators have sufficient information to understand the activity of market participants across both commodity markets.
Throughout the recent turmoil in financial markets, the performance of CFTC regulated futures exchanges stands in welcome contrast to the OTC markets, and we believe the need for transparency, access to relevant trading data and the protections afforded by central counterparty clearing services has never been greater in financial and commodity derivatives markets. The Commission's recommendation to further promote policies that enhance and facilitate clearing of OTC derivatives is both welcome and fully supported by CME Group.
Furthermore, the Commission report supports the fact that fundamental factors of supply and demand are driving market prices. As the data from the Commission's report clearly shows, speculative trading positions by index traders in crude oil actually declined while prices in oil continued to rise. This data unequivocally demonstrates that market fundamentals have been influencing pricing trends.
CME Group intends to work with the Commission to ensure that the market regulation and customer protection mechanisms in U.S. futures markets are unmatched and we anticipate a greater need for transparency in the OTC markets. As a global industry leader, CME Group looks forward to participating in the ongoing analysis, discussion and debate concerning these matters. CME Group consistently works with our industry and market users to make sure our markets remain sound as part of the most efficient, transparent marketplace in the world."
"We commend the Commission and its staff's hard work on this report to ensure that exchange-traded and over-the-counter (OTC) derivatives markets in energy and agriculture products are functioning properly and to ensure that regulators have sufficient information to understand the activity of market participants across both commodity markets.
Throughout the recent turmoil in financial markets, the performance of CFTC regulated futures exchanges stands in welcome contrast to the OTC markets, and we believe the need for transparency, access to relevant trading data and the protections afforded by central counterparty clearing services has never been greater in financial and commodity derivatives markets. The Commission's recommendation to further promote policies that enhance and facilitate clearing of OTC derivatives is both welcome and fully supported by CME Group.
Furthermore, the Commission report supports the fact that fundamental factors of supply and demand are driving market prices. As the data from the Commission's report clearly shows, speculative trading positions by index traders in crude oil actually declined while prices in oil continued to rise. This data unequivocally demonstrates that market fundamentals have been influencing pricing trends.
CME Group intends to work with the Commission to ensure that the market regulation and customer protection mechanisms in U.S. futures markets are unmatched and we anticipate a greater need for transparency in the OTC markets. As a global industry leader, CME Group looks forward to participating in the ongoing analysis, discussion and debate concerning these matters. CME Group consistently works with our industry and market users to make sure our markets remain sound as part of the most efficient, transparent marketplace in the world."
Friday, 5 September 2008
CME Amends Wheat Contract
CME Group, has submitted changes to its regulator for the benchmark wheat futures contract. The changes, which call for seasonally increased storage fees and additional delivery points, have been recommended to improve convergence between futures and cash prices at contract expiration.
The Commodity Futures Trading Commission (CFTC) must approve any contract changes and proposed implementation schedule pertaining to the grain and oilseed listings at CME Group if the changes are applied to contract months with open interest.
The recommendations are based on input from market participants, including commercial interests, grain elevators, individual traders, proprietary trading firms and others.
-- Changes to the storage rates include introducing seasonal premium charges to be increased during the period from July through November to 8 cents per bushel per month. During the remainder of the crop year from December through June, the exchange is recommending that premium charges remain at their current level of 5 cents per bushel per month.
-- Three additional delivery territories are also being recommended. The delivery areas would include shuttle train loading facilities in a 12-county area of northwest Ohio; barge loading facilities on the Ohio River from Cincinnati to the Mississippi River; and barge loading facilities on the Mississippi River from below St. Louis to Memphis. In addition, northwest Ohio locations will be added at a 20 cent per bushel discount; Ohio River locations at par; and Mississippi River locations at a 20 cent per bushel premium.
-- Finally, the exchange is recommending that the vomitoxin level for par delivery be lowered from three parts per million (ppm) to two ppm. Wheat containing three ppm of vomitoxin will continue to be deliverable at a 12 cent per bushel discount and wheat containing four ppm of vomitoxin will continue to be deliverable at a 24 cent per bushel discount.
The Commodity Futures Trading Commission (CFTC) must approve any contract changes and proposed implementation schedule pertaining to the grain and oilseed listings at CME Group if the changes are applied to contract months with open interest.
The recommendations are based on input from market participants, including commercial interests, grain elevators, individual traders, proprietary trading firms and others.
-- Changes to the storage rates include introducing seasonal premium charges to be increased during the period from July through November to 8 cents per bushel per month. During the remainder of the crop year from December through June, the exchange is recommending that premium charges remain at their current level of 5 cents per bushel per month.
-- Three additional delivery territories are also being recommended. The delivery areas would include shuttle train loading facilities in a 12-county area of northwest Ohio; barge loading facilities on the Ohio River from Cincinnati to the Mississippi River; and barge loading facilities on the Mississippi River from below St. Louis to Memphis. In addition, northwest Ohio locations will be added at a 20 cent per bushel discount; Ohio River locations at par; and Mississippi River locations at a 20 cent per bushel premium.
-- Finally, the exchange is recommending that the vomitoxin level for par delivery be lowered from three parts per million (ppm) to two ppm. Wheat containing three ppm of vomitoxin will continue to be deliverable at a 12 cent per bushel discount and wheat containing four ppm of vomitoxin will continue to be deliverable at a 24 cent per bushel discount.
Monday, 1 September 2008
CME Association Relations Director LaRosa
CME Group, the world's largest and most diverse derivatives exchange, today announced that is has hired Chris LaRosa as Director, Association Relations. LaRosa will be responsible for the implementation of CME Group's global association strategy and ensuring that the company's relationships with professional and industry associations are aligned with its corporate initiatives in order to deliver customer value. He will report to Chris Mead, Director, Product Marketing. Prior to joining CME Group, LaRosa, 33, gained more than 10 years of stakeholder relations and public sector experience in consulting and other roles. He most recently served as Principal and Practice Leader with SRA International in Arlington, Virginia, where he led business development initiatives and provided consulting services in the areas of energy and environmental policy, including emerging carbon regulatory programs and markets. He also has worked for the Virginia Department of Housing and Community Development and the Office of Economic Development at James Madison University.
CME Names New York Team
Following its combination with NYMEX Holdings, Inc. earlier this month, CME Group (NASDAQ:CME) , today named the senior leadership team for its New York-based operations.
"As we work to achieve the value that our combination promises to shareholders, customers and members, we are delighted to welcome these talented individuals to leadership positions in the combined company," said CME Group Chief Executive Officer Craig S. Donohue. "With these senior officers in place, we are well positioned to leverage the capabilities of the NYMEX team and expand the NYMEX energy and COMEX metals business and customer base, thereby ensuring that CME Group continues to be where the world comes to manage risk in every asset class."
The company named Bryan Durkin, its current Managing Director and Chief Operating Officer, to lead global integration efforts associated with the NYMEX transaction and to work closely with the following NYMEX senior executives named to continuing roles in the combined company:
-- De'Ana Dow, Managing Director, Government Relations. Dow will be responsible for serving as CME Group's liaison to Washington D.C. and advancing the company's legislative and regulatory agendas. The company also promoted Bo Chambliss as Managing Director, Government Relations. Dow and Chambliss will serve as co-heads of the company's Washington, D.C. office.
-- Sean Keating, Managing Director, NYMEX Operations. Keating will be responsible for all New York-based electronic- and floor-trading operations, as well as facility operations. He will report to Julie Holzrichter, CME Group Managing Director, Global Operations.
-- Thomas LaSala, Managing Director, NYMEX Chief Regulatory Officer. LaSala will oversee all market regulation and regulatory affairs related to the NYMEX self-regulatory organization. He will report to Kathleen Cronin, CME Group General Counsel and Corporate Secretary.
-- Robert Levin, Managing Director, Energy Research & Product Development. Levin will be responsible for all energy and metals product development. He will report to Julie Winkler, CME Group Managing Director, Research & Product Development.
-- Arthur McCoy, Managing Director, NYMEX Clearing. McCoy will manage risk management, clearing operations and audit for the NYMEX division of CME Clearing. He will report to Tim Doar, Managing Director, Risk Management.
-- Joseph Raia, Managing Director, Energy and Metals. Raia will be responsible for building energy and metals customer relationship management and sales programs. He will report to Rick Redding, CME Group Managing Director, Products & Services.
-- Christopher Rodriguez, Managing Director, Business Development. Rodriguez will oversee corporate development efforts in energy and metals asset classes. He will report to Ken Vroman, CME Group Managing Director and Chief Corporate Development Officer.
-- Ian Wall, Managing Director, NYMEX Information Technology. Wall will oversee all technology integration efforts as well as NYMEX technology operations. He will report to Kevin Kometer, CME Group Chief Information Officer.
"As we work to achieve the value that our combination promises to shareholders, customers and members, we are delighted to welcome these talented individuals to leadership positions in the combined company," said CME Group Chief Executive Officer Craig S. Donohue. "With these senior officers in place, we are well positioned to leverage the capabilities of the NYMEX team and expand the NYMEX energy and COMEX metals business and customer base, thereby ensuring that CME Group continues to be where the world comes to manage risk in every asset class."
The company named Bryan Durkin, its current Managing Director and Chief Operating Officer, to lead global integration efforts associated with the NYMEX transaction and to work closely with the following NYMEX senior executives named to continuing roles in the combined company:
-- De'Ana Dow, Managing Director, Government Relations. Dow will be responsible for serving as CME Group's liaison to Washington D.C. and advancing the company's legislative and regulatory agendas. The company also promoted Bo Chambliss as Managing Director, Government Relations. Dow and Chambliss will serve as co-heads of the company's Washington, D.C. office.
-- Sean Keating, Managing Director, NYMEX Operations. Keating will be responsible for all New York-based electronic- and floor-trading operations, as well as facility operations. He will report to Julie Holzrichter, CME Group Managing Director, Global Operations.
-- Thomas LaSala, Managing Director, NYMEX Chief Regulatory Officer. LaSala will oversee all market regulation and regulatory affairs related to the NYMEX self-regulatory organization. He will report to Kathleen Cronin, CME Group General Counsel and Corporate Secretary.
-- Robert Levin, Managing Director, Energy Research & Product Development. Levin will be responsible for all energy and metals product development. He will report to Julie Winkler, CME Group Managing Director, Research & Product Development.
-- Arthur McCoy, Managing Director, NYMEX Clearing. McCoy will manage risk management, clearing operations and audit for the NYMEX division of CME Clearing. He will report to Tim Doar, Managing Director, Risk Management.
-- Joseph Raia, Managing Director, Energy and Metals. Raia will be responsible for building energy and metals customer relationship management and sales programs. He will report to Rick Redding, CME Group Managing Director, Products & Services.
-- Christopher Rodriguez, Managing Director, Business Development. Rodriguez will oversee corporate development efforts in energy and metals asset classes. He will report to Ken Vroman, CME Group Managing Director and Chief Corporate Development Officer.
-- Ian Wall, Managing Director, NYMEX Information Technology. Wall will oversee all technology integration efforts as well as NYMEX technology operations. He will report to Kevin Kometer, CME Group Chief Information Officer.
Friday, 22 August 2008
CME Completes NYMEX Acquisition
CME Group Inc. (NASDAQ:CME) today announced that it has completed its acquisition of NYMEX Holdings, Inc. (NYSE:NMX) . The combined companies will provide customers around the world with access to all major benchmark asset classes, including interest rates, equity indexes, foreign exchange, energy, agricultural commodities and metals. CME Group Class A common stock will continue to trade on the NASDAQ under the ticker symbol "CME." NYMEX Holdings, Inc. common stock is being delisted and will no longer trade on the NYSE.
The merger creates a company with pro forma 2007 annual revenue of $2.7 billion and average trading volume of approximately 14.2 million contracts per day in the first two quarters of 2008. Customers from more than 85 countries trade CME Group products, primarily electronically. Corporate headquarters of the combined company will remain in Chicago at 20 S. Wacker Drive. CME Group's New York office will be located at the NYMEX World Headquarters, One North End Avenue.
"We are extremely pleased to complete our transaction and welcome NYMEX and COMEX into CME Group," said CME Group Executive Chairman Terry Duffy. "This is another milestone for CME Group and NYMEX in our long and successful histories. Together, we will continue operating the largest and most diverse derivatives exchange in the world. We are extremely grateful for the support of NYMEX shareholders, members and employees. As a united company, we are well positioned for a new phase of growth, innovation and product development that will benefit our customers, shareholders and market users around the world."
"We are very proud to have now completed the consolidation of three of the world's most important and successful derivatives exchanges," said CME Group Chief Executive Officer Craig Donohue. "Our NYMEX and COMEX acquisition further strengthens CME Group's leading position in global financial markets and provides significant and valuable new growth opportunities for our shareholders, customers and members. CME Group has a strong track record of delivering cost synergies and realizing revenue and growth opportunities from consolidation transactions and we now look forward to the integration of our two great companies."
The merger creates a company with pro forma 2007 annual revenue of $2.7 billion and average trading volume of approximately 14.2 million contracts per day in the first two quarters of 2008. Customers from more than 85 countries trade CME Group products, primarily electronically. Corporate headquarters of the combined company will remain in Chicago at 20 S. Wacker Drive. CME Group's New York office will be located at the NYMEX World Headquarters, One North End Avenue.
"We are extremely pleased to complete our transaction and welcome NYMEX and COMEX into CME Group," said CME Group Executive Chairman Terry Duffy. "This is another milestone for CME Group and NYMEX in our long and successful histories. Together, we will continue operating the largest and most diverse derivatives exchange in the world. We are extremely grateful for the support of NYMEX shareholders, members and employees. As a united company, we are well positioned for a new phase of growth, innovation and product development that will benefit our customers, shareholders and market users around the world."
"We are very proud to have now completed the consolidation of three of the world's most important and successful derivatives exchanges," said CME Group Chief Executive Officer Craig Donohue. "Our NYMEX and COMEX acquisition further strengthens CME Group's leading position in global financial markets and provides significant and valuable new growth opportunities for our shareholders, customers and members. CME Group has a strong track record of delivering cost synergies and realizing revenue and growth opportunities from consolidation transactions and we now look forward to the integration of our two great companies."
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