“This time of unprecedented market conditions has led to growing demand for a broader range of delivery needs …”
(Silver Doctors Editors) Strange things are afoot at the COMEX.
There’s a mad scramble to deliver any darn gold they can deliver into the market.
In fact, whereas the contract size in the US has been 100 ounces for a gold futures contract, there will now be the “expanded flexible delivery” options of 400-ounce bars and kilo bars.
From yesterday’s CME Group News Release:
CME Group to Launch New Gold Futures Contract with Expanded, Flexible Delivery in 100-ounce, 400-ounce or 1-kilo Bars
CHICAGO, March 24, 2020 /PRNewswire/ — CME Group, the world’s leading and most diverse derivatives marketplace, today announced the launch of a new gold futures contract with expanded delivery options that include 100-troy ounce, 400-troy ounce and 1-kilo gold bars. The new contract is expected to launch with a first expiration of April 2020, pending regulatory approval.
“This time of unprecedented market conditions has led to growing demand for a broader range of delivery needs for our clients worldwide,” said Derek Sammann, Senior Managing Director and Global Head of Commodity and Options Products, CME Group. “By offering a choice of delivery sizes as well as inter-commodity spreads with our benchmark gold futures, this new contract will provide customers with maximum flexibility in managing physical delivery.”
The new futures contract will be available for trading on CME Globex and for submission for clearing via CME ClearPort, and will be subject to the rules and regulations of COMEX. The approved brand list for this product will have complete convergence with the approved brand list for CME Group’s existing gold futures and the LBMA gold good delivery list.
A specific launch date is expected to be announced later this week. For more information on CME Group’s precious metals product suite, please visit: www.cmegroup.com/gold.