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CME To Launch New 1,000-Ounce Silver Futures Contract In June

By Kitco News
Thursday April 18, 2013 9:35 AM

(Kitco News) - The CME Group will launch a new physically delivered 1,000-ounce silver futures contract, which will be one-fifth the size of the standard silver contract, the exchange said on Thursday.

The new contract is slated to start trading in June. This contract will be listed with, and subject to, the rules and regulations of Comex. The CME Group operates the Comex exchange.

"We’re introducing our new 1,000-ounce silver futures contract in response to demand from our customers, who are increasingly looking for cost-effective ways to manage risk," said Robert Ray, CME group managing director EMEA, in a press release. "The smaller size will provide market participants with greater flexibility to manage their silver price risk, and serve as a more cost-effective tool for individual investors or others looking to hedge against economic uncertainty. This is the first contract of its size that will be fully fungible and deliverable against our existing benchmark silver futures contract.”

The new 1,000-ounce silver contract will be fully fungible with the full-sized silver futures contract, which is 5,000 ounces. Market participants who accumulate five warehouse depository receipts of the 1,000-ounce contract can convert them into one 5,000-ounce silver futures contract, the exchange said.

This contract will be available on the CME Globex electronic trading platform, for over-the-counter clearing through CME ClearPort and open outcry on the trading floor in New York, beginning with the September 2013 contract month, the exchange said.

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By Debbie Carlson of Kitco News dcarlson@kitco.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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