CME Group Announces First Trades of Molybdenum Oxide (Platts) Futures

CME Group has launched Molybdenum Oxide (Platts) futures, marking an important development in the derivatives market.

Rhea-AI Summary

CME Group has launched Molybdenum Oxide (Platts) futures, marking an important development in the derivatives market. On March 13, 2023, 90 contracts were traded, with open interest extending to February 2024. This new product aims to help participants manage risks associated with the energy transition. Demand for Molybdenum, crucial for clean energy technologies, is expected to rise, providing price signals in a volatile market. The futures contracts will settle based on the Platts Molybdenum Oxide Daily Dealer assessment, standardizing trading in this key industrial commodity.

Positive

• Launch of Molybdenum Oxide futures expands CME Group's product offerings.
• Initial trading volume of 90 contracts indicates strong market interest.
• Futures will help industry participants hedge against price volatility.

Negative

• None.

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CHICAGO, March 14, 2023 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced the first trades of Molybdenum Oxide (Platts) futures. A total of 90 contracts were traded on March 13, 2023, with open interest extending out to February 2024.

"We are pleased to see early interest and support for the new Molybdenum futures, which is the latest product designed to help participants manage the risks associated with the energy transition," said Jin Chang, Managing Director and Global Head of Metals at CME Group. "Molybdenum has many applications, including to enhance the performance of steel, and demand for the material is expected to rise as production of clean power technologies ramps up. Molybdenum futures will allow for the industry to hedge against increasingly volatile prices, while also providing important price signals in an emerging market."

"We are pleased that CME Group has introduced Molybdenum futures. Demand by and large is expected to grow, in particular demand from clean energy sectors such as wind, hydrogen, and other green technologies is on the rise," said Hector Silva Head of Molybdenum Trading at Glencore. "Glencore is excited to participate in these markets, which will help create more price discovery in areas essential to the green transition."

"We see the launch of Molybdenum futures as another important milestone in the global transition to cleaner sources of energy, where Traxys is playing a critical role today," said Daniel Katz, Head of Molybdenum Trading at Traxys. "We are already an active participant in CME Group's Cobalt and Lithium markets as demand for electronic vehicles continue to increase and we look forward to helping Molybdenum markets grow, which will better serve our customers and suppliers in these emerging areas." 

Molybdenum futures have a contract size of 1,322.77 pounds, the equivalent of 60% of one metric ton, which reflects standard trading terms in the physical molybdenum market. Molybdenum futures are financially-settled to the Platts Molybdenum Oxide Daily Dealer (Global) assessment, which is the key industry reference point for pricing molybdenum oxide and associated downstream products across the supply chain.

Molybdenum futures are listed by and subject to the rules of COMEX. For more information and for full contract specs, 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 and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively. 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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the significance of CME Group's Molybdenum Oxide futures launch?

The Molybdenum Oxide futures allow market participants to hedge against price volatility and respond to rising demand for clean energy technologies.

When were the first trades of Molybdenum futures executed?

The first trades of Molybdenum Oxide futures were executed on March 13, 2023.

How many Molybdenum contracts were traded initially?

A total of 90 Molybdenum Oxide futures contracts were traded in the first instance.

What is the contract size for Molybdenum futures?

The contract size for Molybdenum futures is 1,322.77 pounds, equating to 60% of one metric ton.

What impact does Molybdenum have on the clean energy sector?

Molybdenum is essential for enhancing steel performance, which is key in clean energy technologies, indicating rising demand in the sector.