By Neena Rai
CME Group said Tuesday it plans to launch a euro-denominated
cocoa futures contract on its European exchange, CME Europe.
The launch of the cocoa futures contract on CME Europe -- set to
take place on March 30 -- would represent the first exchange to
have a euro-denominated contract for physical delivery.
"The introduction of the euro-denominated deliverable contract
is in response to demand from various market players in the cocoa
industry," Jeffry Kuijpers, executive director of agricultural
commodities at CME Group said.
"As the contract is euro-based, it can help to alleviate
currency risks for many cocoa processors who are actually based in
Europe," said Mr. Kuijpers.
Meanwhile, CME Europe will also launch a U.S. dollar-denominated
contract on a cash-settlement basis.
The contract will provide "customers with a cost-effective and
efficient way to arbitrage between the London and New York cocoa
futures markets.
Customers will also be able to take advantage of the margin
efficiencies available from having both contracts cleared by CME
Clearing Europe," the company said.
Write to Neena Rai at neena.rai@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires