CME Group announced its plan to introduce a new suite of micro grain and oilseed futures contracts, aiming to provide additional flexibility for market participants.
These contracts, set to launch on February 24, 2025, will be cash-settled and are designed to be one-tenth the size of the company's existing Corn, Wheat, Soybean, Soybean Oil, and Soybean Meal futures, pending regulatory approval.
John Ricci, Managing Director and Global Head of Agriculture at CME Group, emphasized the significance of the company's benchmark grain and oilseed futures products as the most liquid and highly-utilized markets in global agriculture. He stated that the smaller-sized contracts are intended to give market participants more precision in managing their agricultural portfolios.
Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers (NASDAQ:IBKR), expressed enthusiasm for the upcoming micro-sized agricultural futures products from CME Group. He highlighted the benefits of micro futures contracts in terms of cost-effectiveness and transparency, noting that they allow active traders and institutional clients to engage with futures markets with lower capital requirements.
Samuel Klein, Product Owner of Futures and Options at Saxo, also welcomed the addition of CME Group's (NASDAQ:CME) micro agriculture futures to their platform. Klein pointed out that these products are crucial for expanding market opportunities for retail investors and that the smaller contract sizes will enable clients to diversify their portfolios more effectively.
Teyu Che Chern, CEO of Phillip Nova, remarked on the significance of the new Micro Agriculture contracts in making agricultural trading more accessible to a wider range of market participants. He expressed eagerness to support the launch and to provide clients with additional tools for navigating the dynamic agricultural markets.
The upcoming Micro Corn, Wheat, Soybean, Soybean Oil, and Soybean Meal futures will be listed by and subject to the rules of the Chicago Board of Trade (CBOT).
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