ML-Implode News - CME Group Announces the Launch of Physically Delivered Gold Kilo Futures

"We are pleased to see CME Group's launch of the first Asia price reference of gold which is also an extension of a global benchmark," said Arthur Fan, Chief Executive Officer of BOCI Global Commodities (UK) Limited, a wholly-owned subsidiary of BOC International Holdings Limited. "The Gold Kilo Futures by CME Group is a unique contract that will allow market participants to manage their exposure to the regional gold price with much greater precision."
CME Group's new Gold Kilo Futures contract will be physically delivered in COMEX-approved Hong Kong vaults. The contract will enable market participants to benefit from the reliability and proven integrity of the COMEX delivery process when they make and take delivery of 9999 gold kilo bars in Hong Kong. The contracts will be available for trading electronically via CME Globex, as well as submission for clearing through CME ClearPort and will be listed by and subject to the rules of COMEX.''

Gotta get in on the Asian action, which looks set to sweep all else into the dustbin of history! What will be interesting will be to see the effect of this contract on CME's other contracts, which are so overtly-manipulated and disconnected from physical market buying. The inherent arbitrage opportunities could very well bring the mainstay futures contracts for gold and silver in line with realistic, physically-based market prices...

Relevant:

CME Group Announces the Launch of Physically Delivered Gold Kilo Futures