CME Group to Launch North European Hot-Rolled Coil Steel Options on May 2
CME Group announced the launch of an options contract for North European Hot-Rolled Coil Steel futures, effective May 2, pending regulatory approval. The decision responds to rising demand for risk management tools amid global steel market volatility, with open interest in existing futures exceeding 42,000 metric tons.
The U.S. HRC Steel futures have seen consistent growth, with open interest surpassing 40,000 contracts in 2021, and average daily trading volume reaching 1,100 contracts. This new offering aims to further enhance client strategies.
- Introduction of North European Hot-Rolled Coil Steel options on May 2, enhancing risk management capabilities.
- Open interest in European HRC Steel futures exceeds 42,000 metric tons, indicating strong market demand.
- Consistent growth in U.S. HRC Steel futures with open interest over 40,000 contracts and record average daily trading volume.
- None.
CHICAGO, March 30, 2022 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that it will launch an options contract on its North European Hot-Rolled Coil Steel (Argus) futures on May 2, pending regulatory review.
"Given price volatility and uncertainty across the global steel supply chain, we are seeing a growing demand for European HRC Steel options to help our clients more precisely manage their risk," said Jin Chang, Managing Director and Global Head of Metals at CME Group. "Open interest in our European HRC Steel futures has surpassed 42,000 metric tons as participation continues to grow across our entire ferrous metals complex. We look forward to introducing options, which should complement our clients' existing strategies and help them minimize risk."
CME Group Steel futures products have been growing steadily since launch. 2021 was the fifth consecutive year of growth for U.S. HRC Steel futures, reaching open interest as high as over 40,000 contracts, equivalent to over 800,000 metric tons, and average daily trading volume hitting a record 1,100 contracts.
The global appeal of CME Group's around-the-clock liquidity continues to attract new users, with total metals options volume during non-U.S. hours reaching
North European HRC Steel options will be cash settled and based on a monthly average price, and will be listed by and subject to the rules of COMEX. 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.
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SOURCE CME Group
