Euronext plans to launch its scheduled durum and feed barley contracts in the second half of next year, marking the exchange’s move to cash-settled grain futures, its materials manager said on Thursday. raw.
Euronext announced a year ago that it would develop cash-settled contracts, starting with durum wheat and feed barley, in order to grow its commodities business currently focused on futures contracts offering physical delivery.
It was initially targeting a launch this year for durum wheat and feed barley contracts, depending on the development of a related trading platform.
“The cash-settled platform will be available in the second half of next year,” Nicholas Kennedy told the Global Grain conference.
“We are confirming durum and barley, these are the only ones we are confirming at the moment, but we are in talks for other products.”
Euronext’s commodities business is dominated by its milling wheat futures contracts in France, a benchmark widely used on the European grain market.
Instead of using delivery at expiration of futures contracts to link them to physical markets, cash settlement uses a physical reference price.
In addition to developing new futures contracts, Euronext could also develop spreads, for example to trade the price differences between its milling wheat futures contracts and physical origins like German or Black Sea wheat, a Kennedy said.
Euronext will work with several price information agencies to obtain physical references, Kennedy added.
Source: Reuters (Report by Gus Trompiz and Sybille de La Hamaide; Editing by Mark Potter)