LONDON and CHICAGO, Sept. 9 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced the launch of E-micro gold futures exclusively on CME Globex to begin trading on October 3 for trade date October 4. These contracts will be listed by and subject to the rules and regulations of COMEX.
The E-micro gold contract is one-tenth the size of the benchmark 100-oz full-size gold futures contract and carries a smaller initial margin requirement. It also has lower trading fees than the standard gold contract, but offers the same full investor safeguards of trading in CME Group's regulated environment.
"Customers have expressed specific interest in trading a smaller gold contract because it provides a more economical approach for trading gold futures and it gives them more flexibility to execute a variety of trading strategies over varying time periods," said Joe Raia, CME Group Managing Director of Energy Products and Services. "More active market participants, such as Commodity Trading Advisors, can use these as a more efficient way to adjust positions or create more precise delta adjustments to trading strategies."
In addition, currency traders who use gold in their trading strategies now have a more appropriate size for trading in conjunction with the suite of CME E-micro FX contracts.
When E-micro gold contracts are taken to delivery, market participants receive an Accumulated Certificate of Exchange ("ACE") which represents 10% ownership in a 100-oz gold bar, held in the form of a COMEX gold warrant. Through accumulation of ACEs and a conversion process, delivery can be made or taken of a 100-oz COMEX gold warrant (depository receipt). E-micro gold futures do not allow for an individual to take possession nor delivery of a 10-oz gold bar.
Listed contracts will include February, April, June, August, October and December falling within a 24-month period. Trading hours are Sunday through Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT). For more information, please go to www.cmegroup.com/emicrogold.