Exchange operator CME Group said on Thursday that it will launch new micro futures contracts on agricultural products next month.
The new futures contracts, which will go live towards the end of February, are one tenth of the size of their existing equivalents.
Corn, wheat, soybean, soybean oil and soybean meal futures will be added to the exchange’s offering. All contracts will be cash settled.
“Our benchmark grain and oilseed futures products are the most liquid and highly-utilized markets in global agriculture today,” said John Ricci, Managing Director and Global Head of Agriculture at CME Group.
“These smaller-sized contracts will provide additional flexibility for market participants to manage their agricultural portfolios with greater precision.”
CME’s decision to add the products reflects growing demand from retail clients for access to exchange-traded derivatives. Trading in micro futures on gold and cryptocurrencies, as well as options on indicies, continues to hit record highs.
Brokers that have traditionally offered OTC products in Europe are increasingly weighing up adding these products, in order to protect themselves against any further restrictions on CFDs.
