Saudis drop WTI oil contract

Discussion in 'Energy Futures' started by new$, Oct 29, 2009.

  1. new$


  2. heech



    Physically Delivered Sour Crude Futures Contracts Also to be Listed on NYMEX

    CHICAGO, Oct. 30 /PRNewswire-FirstCall/ -- CME Group, the world's largest and
    most diverse derivatives marketplace, today announced the launch of trading
    and clearing services for cash-settled trade-month swap futures on the Argus
    Sour Crude Index (ASCI) as published by Argus Media. Under a licensing
    agreement with Argus Media, CME Group can develop futures, options and
    over-the-counter (OTC) offerings on a broad range of Argus products. Trading
    for the ASCI product is scheduled to begin November 23 on the New York trading
    floor. Clearing services will be available through CME ClearPort, a set of
    flexible clearing services open to OTC market participants to substantially
    mitigate counterparty risk and provide neutral settlement prices across asset

    The ASCI tracks the price in the physical market of a basket of US Gulf Coast
    crude oils, including Mars, Poseidon and Southern Green Canyon, which are
    priced at a differential to the NYMEX Light Sweet Crude Oil (WTI), the world's
    most liquid, leading crude oil benchmark. The ASCI OTC contract will provide
    producers, commercials and others an essential tool for pricing spreads on
    these grades with NYMEX WTI.

    In addition, CME Group plans to launch a new physically delivered US Gulf
    Coast Sour Crude Oil futures contract, which will be listed on CME Globex and
    CME ClearPort by the end of January 2010. The sour crude futures contract has
    main delivery grades that closely mirror the ASCI, enabling an efficient tool
    for hedging opportunities and to meet the evolving needs of the energy
    industry. The contracts will be listed by and subject to the rules and
    regulations of NYMEX.

    "We are pleased to offer OTC futures contracts on the ASCI, which complement
    our WTI futures," said CME Group Executive Chairman Terry Duffy. "This week,
    Saudi Arabia announced that they will begin using the ASCI to price their
    substantial oil exports. This further strengthens the benchmark status of our
    WTI contract as ASCI components are priced as differentials to the WTI
    settlement price."

    "The ASCI OTC futures contract, in concert with the WTI contract, will enable
    our customers to hedge price exposure to the global crude market with greater
    precision," said CME Group Chief Executive Officer Craig Donohue.
    "Additionally, Saudi Arabia's adoption of ASCI could spur demand for our new
    sour crude futures contract, which will provide an additional pivot point for
    price determination and risk management in the world oil market."

    The vendor code for the ASCI contract is 29. The first listed month will be
    the January 2010 contract month. The contract will be listed for 36
    consecutive contract months.

    For more information please visit

    As the world's largest and most diverse derivatives marketplace, CME Group
    ( is where the world comes to manage risk. CME Group
    exchanges offer the widest range of global benchmark products across all major
    asset classes, including futures and options based on interest rates, equity
    indexes, foreign exchange, energy, agricultural commodities, metals, weather
    and real estate. CME Group brings buyers and sellers together through its CME
    Globex® electronic trading platform and its trading facilities in New York and
    Chicago. CME Group also operates CME Clearing, one of the largest central
    counterparty clearing services in the world, which provides clearing and
    settlement services for exchange-traded contracts, as well as for
    over-the-counter derivatives transactions through CME ClearPort®. These
    products and services ensure that businesses everywhere can substantially
    mitigate counterparty credit risk in both listed and over-the-counter
    derivatives markets.

    The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex, E-mini
    and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc. CBOT and
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    Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc.
    All other trademarks are the property of their respective owners. Further
    information about CME Group (Nasdaq: CME) and its products can be found at
  3. risky63


    my friend is the specialist for cme's stock, can't wait to talk to him.