Derivatives exchange CME Group announced Wednesday that it will launch US Midwest Domestic Hot Rolled Coil (HRC) steel futures contracts for trading and clearing on the Chicago Mercantile Exchange's electronic trading platform, Globex® and on the New York Mercantile Exchange's (NYMEX) ClearPort® platform, beginning October 19 for the October 20 trade date.
CME says the contract will be financially settled against an index developed by CRU International. The contract size will be 20 net tons (nt) with a minimum price fluctuation of $5/nt and will be listed for 18 consecutive months.
"In these uncertain financial markets, an exchange traded contract will provide customers with market transparency and integrity," said Rick Redding, CME Group managing director of products and services.
More details on the contract specifications can be found at www.nymex.com/steel .