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CME Group (CME) Schedules Launch of Portside Iron Ore Futures
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CME Group Inc. (CME - Free Report) is set to unveil two China portside iron ore futures contracts. They will be launched, following regulatory approval, on Jan 10, 2022.
The two contracts, Iron Ore China Portside Fines CNH, fot Qingdao (Argus) futures contract and Iron Ore China Portside Fines USD Seaborne Equivalent (Argus) futures contract, will be financially settled based on assessments for portside prices published by Argus Media.
The Iron Ore China Portside Fines CNH, fot Qingdao (Argus) futures contract is a new futures product offered by COMEX, which is quoted in Chinese Renminbi (CNH) per wet metric ton. The Iron Ore China Portside Fines USD Seaborne Equivalent (Argus) futures contract is a new futures product offered by COMEX, which is quoted in USD per dry metric ton.
CME Group’s suite of Ferrous products includes Iron Ore and Steel futures and options. These futures offer risk management tools for the global commodities across the supply chain. CME Group’s suite of Ferrous metals is traded over-the-counter and cleared through CME ClearPort and CME Globex that offer $8 billion of financial safeguards.
These new futures are expected to minimize supply chain risk, trade financially settled contracts against industry-leading price indices as well as hedge exposure to global economic growth.
CME Group continues to focus on driving growth and new customer acquisition by expanding, innovating and scaling its core offerings, and increasing participation from non-U.S. customers. This is achieved by expansion of its global sales team, cross-selling of products, expansion of the existing benchmark products, product and service launches and deepening of open interest in core futures and options offerings.
The new iron ore futures contracts will add to CME Group's existing ferrous suite of products. In a bid to meet the growing demand for these new tools, CME Group plans to launch these futures, which are expected to manage the price risk efficiently.
Over the past decade, CME Group has been a pioneer in ferrous metals price risk management. It has been offering a versatile set of solutions across the ferrous supply chain. It has also invested in expanding into the iron ore space, with products covering two similar parts of the iron ore supply chain.
The iron ore market is one of the largest physical commodity markets in the world with an annual production of more than 2.5 billion MT. CME Group products allow customers to access hedging and risk management solutions for both seaborne and portside iron ore exposure. The CME Group Iron Ore suite allows price risk to be managed independently from physical supply. Futures and options are a cost-efficient hedging tool to mitigate risk and protect profit margins.
CME Group exchange consists of designated contract markets for the trading of futures and options contracts. It enables clients to trade futures, options, cash and over-the-counter (OTC) markets and optimize portfolios. It focuses on maximizing futures and options growth globally, diversifying business and revenues, and delivering unparalleled customer efficiencies and operational excellence.
Shares of this largest futures exchange in the world in terms of trading volume as well as notional value traded have increased 26.3% in the past year compared with the industry’s increase of 31.4%. Nonetheless, the company’s policy to ramp up its growth profile and capital position should help shares regain momentum.
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The stock currently carries a Zacks Rank #3 (Hold).
Blackstone’s earnings surpassed estimates in each of the last four quarters, the average beat being 23.74%. The Zacks Consensus Estimate for 2021 and 2022 earnings of Blackstone implies 64.1% and 18.1% year-over-year growth, respectively. The expected long-term earnings growth rate is pegged at 25.1%, higher than the industry average of 17.2%.
OTC Markets Group’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.39%. The Zacks Consensus Estimate for OTC Markets Group’s 2021 and 2022 has moved up 8.3% and 14.8%, respectively in the past 30 days. The expected long-term earnings growth rate is pegged at 9%, in line with the industry average.
Intercontinental Exchange’s earnings surpassed estimates in each of the last four quarters, the average beat being 3.11%. The Zacks Consensus Estimate for 2021 and 2022 earnings of Intercontinental Exchange implies 13.1% and 8.9% year-over-year growth, respectively.
BX, OTCM, and ICE have gained 41.9%, 64.3%, and 23.7%, respectively, in the past year.
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CME Group (CME) Schedules Launch of Portside Iron Ore Futures
CME Group Inc. (CME - Free Report) is set to unveil two China portside iron ore futures contracts. They will be launched, following regulatory approval, on Jan 10, 2022.
The two contracts, Iron Ore China Portside Fines CNH, fot Qingdao (Argus) futures contract and Iron Ore China Portside Fines USD Seaborne Equivalent (Argus) futures contract, will be financially settled based on assessments for portside prices published by Argus Media.
The Iron Ore China Portside Fines CNH, fot Qingdao (Argus) futures contract is a new futures product offered by COMEX, which is quoted in Chinese Renminbi (CNH) per wet metric ton. The Iron Ore China Portside Fines USD Seaborne Equivalent (Argus) futures contract is a new futures product offered by COMEX, which is quoted in USD per dry metric ton.
CME Group’s suite of Ferrous products includes Iron Ore and Steel futures and options. These futures offer risk management tools for the global commodities across the supply chain. CME Group’s suite of Ferrous metals is traded over-the-counter and cleared through CME ClearPort and CME Globex that offer $8 billion of financial safeguards.
These new futures are expected to minimize supply chain risk, trade financially settled contracts against industry-leading price indices as well as hedge exposure to global economic growth.
CME Group continues to focus on driving growth and new customer acquisition by expanding, innovating and scaling its core offerings, and increasing participation from non-U.S. customers. This is achieved by expansion of its global sales team, cross-selling of products, expansion of the existing benchmark products, product and service launches and deepening of open interest in core futures and options offerings.
The new iron ore futures contracts will add to CME Group's existing ferrous suite of products. In a bid to meet the growing demand for these new tools, CME Group plans to launch these futures, which are expected to manage the price risk efficiently.
Over the past decade, CME Group has been a pioneer in ferrous metals price risk management. It has been offering a versatile set of solutions across the ferrous supply chain. It has also invested in expanding into the iron ore space, with products covering two similar parts of the iron ore supply chain.
The iron ore market is one of the largest physical commodity markets in the world with an annual production of more than 2.5 billion MT. CME Group products allow customers to access hedging and risk management solutions for both seaborne and portside iron ore exposure. The CME Group Iron Ore suite allows price risk to be managed independently from physical supply. Futures and options are a cost-efficient hedging tool to mitigate risk and protect profit margins.
CME Group exchange consists of designated contract markets for the trading of futures and options contracts. It enables clients to trade futures, options, cash and over-the-counter (OTC) markets and optimize portfolios. It focuses on maximizing futures and options growth globally, diversifying business and revenues, and delivering unparalleled customer efficiencies and operational excellence.
Shares of this largest futures exchange in the world in terms of trading volume as well as notional value traded have increased 26.3% in the past year compared with the industry’s increase of 31.4%. Nonetheless, the company’s policy to ramp up its growth profile and capital position should help shares regain momentum.
The stock currently carries a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Some better-ranked stocks include The Blackstone Group (BX - Free Report) , OTC Markets Group (OTCM - Free Report) and Intercontinental Exchange (ICE - Free Report) . While Blackstone sports a Zacks #1 Rank (Strong Buy), OTC Markets and Intercontinental Exchange carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Blackstone’s earnings surpassed estimates in each of the last four quarters, the average beat being 23.74%. The Zacks Consensus Estimate for 2021 and 2022 earnings of Blackstone implies 64.1% and 18.1% year-over-year growth, respectively. The expected long-term earnings growth rate is pegged at 25.1%, higher than the industry average of 17.2%.
OTC Markets Group’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.39%. The Zacks Consensus Estimate for OTC Markets Group’s 2021 and 2022 has moved up 8.3% and 14.8%, respectively in the past 30 days. The expected long-term earnings growth rate is pegged at 9%, in line with the industry average.
Intercontinental Exchange’s earnings surpassed estimates in each of the last four quarters, the average beat being 3.11%. The Zacks Consensus Estimate for 2021 and 2022 earnings of Intercontinental Exchange implies 13.1% and 8.9% year-over-year growth, respectively.
BX, OTCM, and ICE have gained 41.9%, 64.3%, and 23.7%, respectively, in the past year.