From *****, this earth-shaking announcement.
"CME to Launch Shanghai-Settled Gold Future Contracts in Q4
Neils ChristensenTuesday July 09, 2019 14:19Kitco NewsShare this article***** News) -
China continues to establish its dominance in the gold market as it works with the CME Group to launch two new gold future contracts.
Announced in late-June, the CME said that it was granted a license to create and list future contracts based on the Shanghai Gold Exchange (SGE) benchmark PM price.
The two contracts, one denominated in U.S. dollars and the other in the yuan are expected to be launched in the fourth quarter of this year.
“This marks the first step in promoting cross-market cooperation that will connect the global liquidity of CME Group's COMEX Gold futures to the world's largest physical gold market in China through SGE,” the CME said in its press release.China is the world’s largest gold producing and consuming nation while the SGE is the world’s largest physical gold exchange.
The CME said that China is establishing itself as an important trading hub in the Asian gold market.“As this regional benchmark starts to attract more interest from investors around the world, the new Shanghai benchmark-based futures serve a unique need in the markets, available via CME Group,” the exchange said.The latest news comes as the gold market has attracted renewed investors’ attention.
Last week, the CME said that it saw record average daily volume in its gold future option contracts.“Gold options volume on June 20 was 199,579 contracts, ranking as the second highest volume day in complex history,” the CME said.
By Neils ChristensenFor ***** NewsFollow @neils_C nchristensen@*****.comwww.*****.com
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