Source: Nyse Euronext
Nyse Euronext, the world's leading and most liquid exchange group, and CME Group, the world's largest and most diverse derivatives exchange, today announced that NYSE Euronext will purchase the CME Group's Metals Complex.
Trading of full and e-mini gold and silver futures and options on futures contracts will begin later this year on LIFFE CONNECT, NYSE Euronext's derivatives trading system, pending regulatory approvals.
Precious metals derivatives currently trade on e-CBOT, an electronic trading platform that is managed by Atos Euronext Market Solutions (AEMS) and powered by LIFFE CONNECT. With the precious metals market as part of NYSE Euronext, market participants will further benefit from the investments made in LIFFE CONNECT by NYSE Euronext. The precious metals complex will continue to be cleared at CME Clearing on an interim basis, after which NYSE Euronext will provide for an alternative clearing solution.
Under terms of the agreement, NYSE Euronext will acquire the CBOT Metals Complex from CME Group, including its volume and open interest. CBOT will continue to act as the Designated Contract Market (DCM) for the products until NYSE Euronext establishes its own DCM. CME Group has agreed to provide clearing services for up to one year.
"The addition of CME Group's precious metals market gives NYSE Euronext a point of entry in the U.S. futures business," said Duncan L. Niederauer, CEO, NYSE Euronext. "With Liffe, NYSE Arca Options and our pending acquisition of the Amex Options business, NYSE Euronext has a strong and innovative global derivatives franchise."
"CME Group is pleased to transition its precious metals products to NYSE Euronext," said Terry Duffy, CME Group Executive Chairman. "This transaction is beneficial for our current metal customers, and at the same time, maintains the integrity of our exclusive agreement to list NYMEX and COMEX products on our CME Globex electronic trading platform."
"We will work closely with NYSE Euronext to ensure a seamless transition in the trading of these products," said Craig Donohue, CME Group Chief Executive Officer. "With the continuation of the LIFFE CONNECT technology and the retention of CME Clearing in the interim, we believe our customers will encounter minimal, if any, inconveniences."
Hugh Freedberg, Group Executive Vice President and Head of Global Derivatives at NYSE Euronext, added: "This acquisition will enable us to leverage Liffe's global distribution network, leading edge technology, and broad range of risk management products for the benefit of our diverse customer base. We expect a smooth transition for customers, as the CME Group Metals Complex operates on a version of our LIFFE CONNECT platform."
The precious metals market was launched by the Chicago Board of Trade in October 2001, making it the first all-electronic gold and silver complex with an electronic delivery system. In 2007, the CME Group Metals Complex traded over 11 million contracts, representing an average daily volume of more than 45,000 contracts in a highly focused product complex that consists of gold futures (mini-and full-sized), gold options, silver futures (mini-and full-sized), and silver options.