CHICAGO - CME Group Inc. said it would launch U.S. dollar-denominated calendar swaps for Malaysian palm olein in November, giving investors a way to reduce default risk and hedge refining margins.
As published by Reuters, the executive director of commodity products at CME Groups, Nelson Low, explained that this will be CME’s second calendar swap for a palm oil product.
The first was the Malaysian crude palm oil (CPO) calendar swap, launched in June 2103, which is based on prices on the Bursa Malaysia Derivatives CPO futures contract. (T4)
