CME Group Announces First Trades of Spodumene Futures

Rhea-AI Summary

CME Group has launched new Spodumene CIF China (Fastmarkets) futures, with 29 contracts traded on the first day. Notable participants included JA Commodities, Mitsubishi RTM, Wogen Resources, and Wooray Commodities, with the first trade executed by Freight Investor Services. The new futures contract adds to CME Group's battery metals product suite, providing additional hedging capabilities for price exposure across the lithium value chain. Industry participants highlighted the importance of these futures for managing risk in the growing battery fabrication sector and meeting increasing demand for lithium-related products.

Positive

• Successful launch of new Spodumene futures with 29 contracts traded on day one
• Participation from major industry players demonstrates market interest
• Expands CME's leadership position in battery metals derivatives market
• Addresses growing demand for lithium-related risk management tools

Negative

• None.

News Market Reaction

-0.45%

1 alert

-0.45% News Effect

On the day this news was published, CME declined 0.45%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

CHICAGO, Oct. 29, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced its new Spodumene CIF China (Fastmarkets) futures have launched and are available for trading. A total of 29 contracts traded on the first day, with participation from a number of firms including JA Commodities (Zhejiang) Ltd, Mitsubishi Corporation RTM International Pte Ltd, Wogen Resources Limited and Wooray Commodities Pte Ltd. The first trade was executed by Freight Investor Services Ltd.

"We are pleased to see early interest in our Spodumene futures, which provide an additional way to hedge price exposure across the lithium value chain," said Jin Hennig, Managing Director and Global Head of Metals at CME Group. "We are already the leader in providing risk management tools that aid in the development of the battery metals industry, and we remain committed to responding to market needs as this space evolves."

"The launch of Spodumene futures is the latest milestone in the growth of the battery sector and we are pleased to be one of the first participants in these markets," said Roger Quek, CEO and Managing Director at Straits Financial Services Pte Ltd. "Our clients continue to seek exposure to essential raw materials in the energy transition and CME Group's suite of products provide the most liquid and efficient way to access these markets today."

"As one of the leading commodity traders in the industrial metals space, we are pleased to be one of the first to trade the Spodumene futures," said Amanda Xiong, General Manager at Wooray Commodities Pte Ltd. "Battery fabrication is rapidly growing and having access to CME Group's suite of lithium products will provide additional capabilities for our clients."

"We are pleased to participate in CME Group's new Spodumene futures markets, which provide additional hedging capabilities and price discovery across the lithium value chain," said Tom Qiu, General Manager of Mitsubishi Corporation RTM International Pte Ltd. "Production of lithium and related feedstocks is accelerating and these new contracts, alongside CME Group's other lithium products, will help the industry be more effective to meet growing demand."

Spodumene CIF China (Fastmarkets) futures are 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. 

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 is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. 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. 

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SOURCE CME Group

FAQ

When did CME Group launch Spodumene futures trading?

CME Group launched Spodumene CIF China (Fastmarkets) futures trading on October 29, 2024.

How many Spodumene futures contracts were traded on CME's first trading day?

29 Spodumene futures contracts were traded on the first day of trading.

Which companies participated in CME's first Spodumene futures trades?

Participants included JA Commodities, Mitsubishi RTM, Wogen Resources, Wooray Commodities, with Freight Investor Services executing the first trade.

What is the purpose of CME's new Spodumene futures contract?

The Spodumene futures contract provides a way to hedge price exposure across the lithium value chain and offers additional risk management tools for the battery metals industry.