A partnership to develop risk management products for both the Brazilian domestic and global markets has been announced by global financial derivatives exchange CME Group and Brazilian stock exchange B3, World Grain reported on 23 June.
Building on the existing agreement for technology and cross-listing of futures products, pending regulatory approvals, the new contract would involve working together to launch futures on Brazilian soyabeans in the third quarter of 2020.
The new agreement also included the extension of the existing B3 cross-listed mini-soybean futures and options contracts, World Grain reported, and would allow the companies to evaluate potential products related to South American soyabean and soybean-related products.
“Brazil is an important player in the global grain and oilseed trade and is expected to export over 83M tonnes of soyabeans this year alone,” said Tim Andriesen, managing director of agricultural products at CME Group.
“These new futures contracts respond to the demand from our customers for regional hedging and price discovery tools that complement the deep liquidity of our benchmark grain and oilseed futures and options.”
Louis Gourbin, superintendente of commodities at B3, added: “This expanded strategic partnership will bring even greater benefits to our Brazilian customers by providing a benchmark specifically related to Brazilian soyabean export prices.
“As our relationship grows, we are excited to explore joint risk management products that will bring additional South American-based trading solutions to the global marketplace.”