The index tracks 19 commodities and is intended to help manage commodity index price risk.
Derivatives marketplace company CME Group has expanded its presence in the global commodities market with the planned addition of FTSE CoreCommodity CRB Index futures, pending regulatory approval.
The FTSE CoreCommodity CRB Index tracks a diversified basket of 19 commodities — including energy, agriculture, precious metals, and industrial metals. Officials say the new offering is designed to help investors more effectively manage commodity index price risk.
CME Group’s move comes in response to growing demand from clients seeking new ways to access commodity index exposure, hedge against adverse price moves, and gain margin efficiencies in their trading strategies. The exchange has reported a sharp 315 percent year-to-date increase in open interest across its commodity index futures suite, rising from 76,000 contracts to 316,000 contracts.
Officials from FTSE Russell say the expanded collaboration with CME Group reflects an effort to keep pace with the evolving needs of market participants — particularly in improving tools for price discovery and enhancing capital efficiency.
FTSE CoreCommodity Index futures will be listed on, and subject to, the rules of CME officials.
CME Group facilitates the trading of futures, options, cash, and over-the-counter (OTC) instruments, and provides support for optimizing portfolios and analyzing data, officials say. CME Group exchanges offer global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals.
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