The largest US futures exchange groups both launched new Euro-denominated cocoa contracts on Monday
The world's top futures markets the CME Group and the Intercontinental Exchange launched on Monday rival Euro-denominated cocoa contracts but the success or failure of these products will be determined by factors such as delivery arrangements and client engagement.
The Merc believes its delivery mechanism will help to
level the playing field alongside incumbent ICE, which currently dominates the cocoa market with its sterling and dollar contracts. “The price you pay for cocoa
in the physical market is often not aligned with the price for exchanged-delivered cocoa and our contract looks to address that,” CME’s executive
director for agricultural commodities, Jeffry Kuijpers, told FOW.
The new CME contract has been designed with a 21 day
delivery as standard while ICE’s commits to 60 day loading out of exchange
goods, a rule that has been in place at the Atlanta-based exchange group
since shortly after its acquisition of NYSE Euronext and its Liffe
market in November 2013.
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