Cleartrade Exchange (CLTX), the Singapore regulated futures exchange for commodity derivatives and LCH.Clearnet Limited ("LCH.Clearnet"), the global clearing house today launched three new Fertilizer Futures contracts designed to bring risk management solutions to a new sector of this growing derivatives market. All products are cash-settled agreements settled against THE FERTILIZER INDEX™, published by Argus Media Limited, Fertecon Limited and CRU International Limited in “The Fertilizer Index” report *.
Richard Heath, Head of Product, CLTX, explains: “At CLTX we champion the importance of constant innovation and are always looking for ways to work with our members and partners to improve liquidity. FC Stone LLC and others have been asking us for a risk management product which will allow many new counterparties to access the Fertilizer futures market. LCH.Clearnet has helped us to respond to that demand and we now have three new futures contracts which will position this market for its next phase of growth.”
Isabella Kurek-Smith, Global Head of Commodities, at LCH.Clearnet Group said: “This initiative underlines our commitment to improving transparency and mitigating risk in the commodities market. We’ve seen significant demand for these Mini Fertilizer Futures from participants who are keen to benefit from the improved risk management and efficiencies associated with clearing.”
Commenting Scott Kleckner, Risk Management Consultant, FC Stone LLC added: “The launch of 25 ton fertilizer futures contracts on CLTX will be beneficial to many of our customers, especially those that want to utilize the forward price transparency to hedge forward customer sales. We see this as a good opportunity for a broader base of participants to engage and another step closer to better volumes and liquidity.”
The three new financially settled futures contracts - LCH Urea (Granular) fob NOLA 25st Future (The Fertilizer Index™); LCH DAP fob NOLA 25st Future (The Fertilizer Index™), and LCH UAN fob NOLA 25st Future (The Fertilizer Index™) - are available for trade registration and execution at CLTX and cleared at LCH.Clearnet from May 14 2015. The contracts are settled against THE FERTILIZER INDEX™including the following price assessments: Urea (gran) fob barge Nola ($/st), DAP fob barge Nola ($/st) and UAN (32% N) fob barge Nola ($/st).
*ARGUS, the ARGUS Logo, FERTECON, the FERTECON Logo, CRU, the CRU Logo and THE FERTILIZER INDEX are trademarks of Argus Media Limited, Fertecon Limited, and CRU International Limited, respectively, and are used under license. All trade mark rights, copyrights and database rights in The Fertilizer Index report and THE FERTILIZER INDEX belong exclusively to Argus Media Limited, Fertecon Limited, and CRU International Limited, and are used under licence.