CHICAGO, Sept. 30,
2024 /PRNewswire/ -- CME Group, the world's
leading derivatives marketplace, today announced that it will
expand its battery metals suite and launch a Spodumene CIF China
(Fastmarkets) Futures contract on October
28, 2024, pending regulatory review.
"Our suite of cobalt and lithium products serve an important
role in the rapidly evolving battery metals space, with industry
adoption accelerating," said Jin
Hennig, Global Head of Metals at CME Group. "With this
launch of Spodumene futures, we will expand hedging capabilities,
making it easier for the market to manage the price differences
across products in the lithium value chain."
"Albemarle welcomes CME Group's launch of spodumene futures,
which complements the lithium market's evolving risk management
needs," said Peter Hannah,
Albemarle's Global Product Pricing Manager. "We recognize that
trust in physical prices underpins confidence in futures trading,
and are proud that our bidding event price discovery initiative has
added valuable transparency to the spot market. The combination of
liquid and robust physical and futures pricing mechanisms can help
our industry grow."
"Developing a liquid and transparent lithium market is essential
for all the players in the battery value chain and CME Group
continues to work towards this goal," said Grant Donald, Chief Commercial Officer at
Liontown. "A forward curve for key materials across the entire
supply chain will be essential to effectively manage price risk for
the rapidly growing clean energy market."
"The spodumene futures contract launch with the CME Group marks
a significant step forward for the lithium market," said
Raju Daswani, Chief Executive
Officer at Fastmarkets. "With this contract, the industry gains a
tool to manage price risk associated with the spodumene price,
conversion margins, as well as take a view on the lithium
conversion spread itself. We believe this will positively
contribute to the liquidity across the entire battery raw materials
futures complex," he added.
CME Group is the leading marketplace for managing battery metals
risk. Open interest in Lithium Hydroxide futures surpassed 30,000
contracts for the first time this year and now extends through
2026. Open interest in Cobalt Metal futures also remains robust and
extends through 2028, providing essential price transparency
further along the curve.
Spodumene CIF China (Fastmarkets) futures will be
financially-settled and will be listed by and subject to the rules
of COMEX. Fastmarkets is one of the most trusted cross-commodity
price reporting agencies (PRA) in the agriculture, forest products,
metals and mining, and new generation energy markets. For more
information, 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 is a trademark of BrokerTec Americas LLC
and EBS is a trademark of EBS Group LTD. 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