INTL AL CONF: Market embraces premiums futures contract hedging after 2018 volatility – CME

Traded volumes and open interest have remained high for the CME’s aluminium premiums futures contracts even after spot market volatility eased this year, Sean Kessler, manager of metals products at the Chicago Mercantile Exchange said on Wednesday September 25.

Speaking at Fastmarkets’ International Aluminium conference in Athens, Greece, Kessler said sustained high volumes during current quieter market conditions show the contracts are now well integrated into the market.
“At the end of 2017 and into 2018, there was a significant volatility spike in the aluminium market which underlined the industry’s need for the CME’s aluminium premiums suite so it could hedge its price risk more precisely,” Kessler said.

“Even though this year the volatility has been less, we are still seeing very strong volume and it shows how these products are...

Published

Alice Mason

September 26, 2019

17:42 GMT

Athens