CME Group and B3 to Jointly Develop New Soybean Futures Contracts Connecting Global Participants to Brazilian Agricultural Markets

Rhea-AI Summary

CME Group and B3 have announced a new agreement to launch futures contracts on Brazilian soybeans in Q3 2020, pending regulatory approval. This expansion builds on their existing partnership, which began in 2007, and includes the extension of mini-soybean futures and options contracts. The initiative aims to provide regional price discovery and hedging tools, responding to the growing demand for Brazilian soybean-related products. Brazil is expected to export over 83 million metric tons of soybeans this year, highlighting its key role in the global agricultural market.

Positive

• Launch of Brazilian soybean futures expected in Q3 2020, enhancing product offerings.
• Strengthened partnership with B3 to provide regional hedging and price discovery tools.
• Brazil's significant soybean export forecast of over 83 million metric tons indicates strong market demand.

Negative

• None.

CHICAGO and SAO PAULO, June 22, 2020 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, and B3 S.A., one of the world's largest financial market infrastructure companies, announced an agreement to jointly develop risk management products for both Brazilian domestic and global market participants. Under the terms of the agreement, CME Group and B3 will work together to launch futures on Brazilian soybeans in Q3 2020, pending regulatory approvals.

These new futures contracts will build on the existing cooperation agreement CME Group and B3 have had in place since 2007 for technology services and cross-listing of futures products. The new, expanded agreement also includes the extension of the existing B3 cross-listed mini-soybean futures and options contracts, and will allow the companies to evaluate potential products related to South American soybean and soybean-related products. 

"Brazil is an important player in the global grain and oilseed trade and is expected to export over 83 million metric tons of soybeans this year alone," said Tim Andriesen, CME Group Managing Director of Agricultural Products. "These new futures contracts respond to the demand from our customers for regional hedging and price discovery tools that complement the deep liquidity of our benchmark grain and oilseed futures and options." 

"This expanded strategic partnership will bring even greater benefits to our Brazilian customers by providing a benchmark specifically related to Brazilian soybean export prices," said Louis Gourbin, Superintendente, Commodities at B3. "As our relationship grows, we are excited to explore joint risk management products that will bring additional South American-based trading solutions to the global marketplace."

For more information, visit: www.cmegroup.com/brazilian-soybeans.

About CME Group

As the world's leading and most diverse 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.  With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.

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, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively.  Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc.  All other trademarks are the property of their respective owners. 

About B3

B3 S.A. (B3SA3) is one of the main financial market infrastructure companies in the world and one of the largest in terms of market capitalization among global leaders in the exchange industry. B3 connects, develops and enables the financial and capital market and, together with customers and society, boosts Brazil's growth. It trades in stock exchange and OTC environments, and offers products and services to the financing chain. Headquartered in São Paulo and with offices London and Shanghai, B3 performs important functions in the market by promoting best practices in corporate governance, risk management and sustainability. B3. With the market. For the future.

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SOURCE CME Group

FAQ

What new product is CME developing with B3?

CME Group is developing futures contracts on Brazilian soybeans, set to launch in Q3 2020 pending regulatory approvals.

How will the new soybean futures affect CME's market offerings?

The new soybean futures will enhance CME's product offerings by providing additional regional hedging and price discovery tools.

What is the significance of Brazil's soybean exports for CME?

Brazil is expected to export over 83 million metric tons of soybeans this year, representing a crucial demand for hedging solutions in the agricultural market.

When was the initial partnership between CME Group and B3 established?

The initial partnership between CME Group and B3 was established in 2007 for technology services and cross-listing of futures products.