Nymex to launch uranium Futures contract, sources say...

Nymex to launch uranium Futures contract, sources say

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Published: April 13, 2007

NEW YORK: Nymex Holdings Inc. is planning to list a uranium futures contract, people familiar with the situation said Friday, as the energy and metals exchange looks to capitalize on surging interest in the nuclear fuel.

The futures contract would provide nuclear power plants with a vehicle to hedge against rising prices that have surged more than tenfold in the past four years as commercial stockpiles dwindle and more plants are built. It would also provide a forum to bet directly on gains and falls in the price of uranium, rather than speculating on the fortunes of miners.

The contract would be cash-settled, eliminating the need for a delivery point for the radioactive material, the sources said.

"Uranium has been the market to be in over the past couple of years," said Phil Flynn, an analyst at Alaron Trading Corp., which trades both energy and metals >from its Chicago office. "Whenever you get a run like this in something that\'s not listed" exchanges see it as a chance to list a new contract, Flynn said.

The people familiar with the situation, who declined to be named, said Nymex had been contacting potential traders of the contract regarding the new listing. Nymex declined to comment on whether it planned to list the contract.