CME Group Announces Chinese Steel Rebar Swap Futures
CME Group (NASDAQ: CME) today announced the launch of Chinese Steel Rebar HRB400 (Mysteel) Swap Futures to begin trading on October 15, subject to regulatory review. This product, which will be listed with, and subject to the rules and regulations of NYMEX, will be the first product listed by a CME Group exchange based on Mysteel's market-leading price data services.
"Working closely with Mysteel, our new rebar contract allows customers who have exposure to the Chinese construction and rebar industries to manage their price risk by using the most relevant price data," said Harriet Hunnable, CME Group Managing Director, Metals Products. "There is demand from industry participants to provide them with tools to help reduce the impact of price volatility throughout the steel supply chain. This product is designed to enable our regional customers to manage rebar price volatility and eliminate counterparty credit risk through a flexible, centrally cleared swap futures product."
In January, CME Group and Mysteel, China's leading provider of ferrous price and indexing services announced an agreement to develop risk management products for the ferrous industry. Mysteel is widely used as the benchmark settlement price index