CME Group Announced Launch of Micro Copper Futures on May 2

SEATTLE (Scrap Monster): CME Group announced the launch of Micro Copper futures (MHG). At one-tenth of the size of benchmark Copper futures, it provides cost-effective new way to fine tune copper exposure and enhance trading strategies. The smaller contract will enable traders of all sizes to manage copper price risks and participate in the potential of the market.

According to CME Group, the conveniently sized contracts are tailored for the individual investor. It is attractive for copper option traders looking to better hedge delta and gamma positions and will be cash settled. The launch is scheduled for May 2, 2022, pending regulatory review.

ALSO READ:

LME Declares Launch of Implied Pricing Mechanism for Base Metals

Copper Prices Setting Up for Record Surge

The new micro copper futures contract manages copper price risk exposure on a smaller, more granular scale that complements the larger contract. The financially settled contract allows users to gain exposure to the copper market without delivery risk. Moreover, it expands CME Group’s Micro suite of products.

Jin Chang, Global Head of Metals at CME Group noted that it is pleased to expand upon its Micro product offerings and introduce Micro Copper futures to global market participants. It looks forward to expanding the ways that traders can access the around the clock liquidity and price transparency offered by metals markets, Chang added.