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CME to Launch Wood Pulp Futures and Options

April 17, 2007 - The Chicago Mercantile Exchange (CME), a unit of Chicago Mercantile Exchange Holdings Inc., announced today that Wood Pulp futures and options on futures will be listed exclusively on CME Globex®, the exchange's electronic trading platform, scheduled to begin trading in the third quarter of this year.

CME Wood Pulp derivatives will be the only cash-settled pulp futures and options contracts to be based on the PIX NBSKP Europe Index(TM) by FOEX Indexes Ltd. FOEX is a private Finland-based independent company that specializes in providing audited, trademarked registered pulp and paper price indexes.

"In response to customer demand, these new contracts will settle to the FOEX Index, which is the industry standard for the global forest products industry," said John Harangody, CME Director of Commodity Products. "The cash-settled over-the-counter wood pulp markets will now have a transparent, all-electronic marketplace for hedging and other trading opportunities without counterparty risk." T

he CME Wood Pulp contracts are based on northern bleached softwood kraft pulp (NBSKP). The contract size is 20 (metric) tonnes with a tick size of $10 per contract ($0.50 per tonne). Trading hours will be from 5 p.m. Sunday Chicago time through 4:00 p.m. Friday with a daily one hour trading pause. The expiring contract closes at noon on the last trading day.

For more information on the CME Wood Pulp contract, please go to www.cme.com/pulp or for more information on FOEX, please go to www.foex.fi.

SOURCE: CME




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