CME Group, international diverse derivatives exchange, announces that hardwood pulp index futures and options on futures will be listed on CME Globex(R), the exchange’s electronic trading platform, scheduled to begin trading 12 January 2009.
The cash-settled hardwood pulp futures and options contracts will be based on the PIX BHKP Europe Index(TM) by FOEX Indexes Ltd. FOEX is a private Finland-based independent company that specializes in providing audited, trademarked registered pulp and paper price indexes.
The ticker symbol of listed CME Group Hardwood Pulp futures contracts will be HWP. The contracts are based on the prices for the bleached hardwood kraft pulp (BHKP) index. Like the northern bleached softwood kraft pulp, or NBSKP contract, the BHKP contract size is 20 (metric) tonnes with a tick size of $10 per contract ($0.50 per tonne).
Trading hours will be from 5 p.m. SundayChicago time through 4:00 p.m.
Customers requested this new contract to use as another tool to hedge risk, says John Harangody, director of Commodity Products, CME Group. Since the new hardwood pulp contract will follow suit with the current softwood pulp contract and settle to a FOEX Index, the industry standard for the global forest products industry, market users will have additional opportunities and flexibility in their trading.
L.D.