Euronext to launch three grain spread futures, including two with CME
Euronext ENX.PA will launch three spread contracts on grains on Oct. 14, including two joint ones with the CME Group CME.O, pending regulatory review, company statements said on Wednesday.
The two joint Euronext-CME spread contracts will allow trades on the spread between Euronext’s milling wheat futures 0#BL2: and both the Chicago Board of Trade 0#W: and Kansas wheat futures 0#KS:, the companies said in separate statements.
The announcement confirms a Reuters report in May that Euronext and the CME planned joint spread futures.
In addition to the two joint contracts, Euronext said it will launch a third spread contract between Euronext milling wheat futures and Euronext maize (corn) futures.
Spread contracts are financially-settled futures contracts based on a price differential between two different products, in this case two different futures.
“Until now, market participants had to trade the different futures contracts separately, executing a spread strategy in two inverse trades on each outright,” Euronext said.
“The listed spread contracts launched by Euronext will allow financial investors and hedgers to execute a spread strategy in one trade only, bringing significant benefits,” it added.
At launch, five expiries will be available for trading, from Dec. 2024 to Dec. 2025, Euronext said.
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