CME Group Inc., the world’s largest and most diverse derivatives exchange, today announced the launch of clearing services for a new Mont Belvieu ethylene futures contract, scheduled to launch on June 14 for trade date June 15. Clearing services will be available through CME ClearPort®, a set of flexible clearing services open to over the counter (OTC) market participants to substantially mitigate counterparty risk and provide capital efficiencies across asset classes. These contracts are listed for trading by NYMEX through CME ClearPort, and are subject to NYMEX rules and regulations.
The commodity code for the new contract will be 1F. It will be listed for up to 24 consecutive months beginning with the July 2009 contract and will be settled against the PetroChem Wire (PCW). The contract will allow an important part of the petrochemical market to hedge their risk with this new physically settled contract.
