INTRODUCTIONTOEURONEXT

COMMODITYDERIVATIVES

March2015

https://derivatives.euronext.com/en/products/commodities
EURONEXTCOMMODITYDERIVATIVES

Productrange
MillingWheat|MaltingBarley|Corn|Rapeseed |RapeseedMeal|RapeseedOil

Comingsoon
SkimmedMilkPowder|WheyPowder|Butter
COMMODITIES | KEYFACTS
Euronextnow
offerstheglobal
Keycontractsnowincluded
inmajorcommodityindices
RogersInternational
53,653
CommodityIndexandS&P averagedailyvolumeof
trading WorldCommodityIndexTM contractstraded.+7%
community increasedspreadvolume
whencomparedto
aroundroll.Diverse
RapeseedMeal customerbaseledby January2014.Activityon
andRapeseedOil commercialhedgersincludes commodityderivatives
funds,proprietarytraders remainsstrongin
andinvestmentbanks
January.
Adynamicfranchisein
comparisonwithour EuronextlaunchnewDairyDerivatives
peersbutfastgrowingand productsinSpringof2015.
alreadyestablishedasan ThecomplexwillconsistofF&Oinbutter,skimmedmilk
internationalbenchmark. powderandwheypowder(listedonEuronextAmsterdam).

3
March
19,2015
MILLINGWHEATFUTURES
Alsoknownas:
ParisWheat,EuropeanWheat,MATIFWheat

Supplyanddemand:
Seasonal:EuropeanharvestinJulyandAugust
Mainproducers:France,Germany&UK.Europeisan
exporter.NewoperatorsonthemarketcomingfromEastern
EuropeandNorthAfrica
EUproductionaround142MTi.e.20%ofworldproduction
(711MTin13/14).
Mainuses:milling,starch,&foodindustry

Futuresmarket:
2014:FuturesADVis33,000lots.OptionsADVis8,000.Total
ADVis2Mtons.
Commodityderivativeshadtheirmostactiveweekeverin
Decemberwithanaveragedailyvolumeof117,289contracts

4
MILLINGWHEAT| CROP
Mainproducersandimporters

5
March
19,2015
 Volume Volume

0
50000
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1000000
1200000

Jan08
Mar08 Jan08
May08 Mar08
Jul08 May08
Sep08 Jul08
Nov08 Sep08
Jan09 Nov08
Mar09 Jan09
May09 Mar09
Jul09 May09
Sep09 Jul09
Nov09 Sep09
Jan10 Nov09
Mar10 Jan10
May10 Mar10
Jul10 May10
Sep10 Jul10
Nov10 MillingWheatOptionsVolume Sep10
MillingWheatFuturesVolume

Jan11 Nov10
Mar11 MillingWheatOptionsOpenInterest Jan11
MillingWheatFuturesOpenInterest

May11 Mar11
Jul11 May11
Sep11 Jul11
Nov11 Sep11
Jan12 Nov11
Mar12 Jan12
May12 Mar12
Jul12 May12
Sep12 Jul12
Nov12 Sep12
Jan13 Nov12
Mar13 Jan13
May13 Mar13
Jul13 May13
Sep13 Jul13
Nov13 Sep13
Jan14 Nov13
Mar14 Jan14
May14 Mar14
Jul14 May14
Sep14
Jul14
MILLINGWHEAT|VOLUME ANDOI

Nov14
Sep14
Jan15
Nov14
0

Jan15
0

100000
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Openinterest
Openinterest
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USWHEATvs EUROPEANWHEAT

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SAWHEATvs EUROPEANWHEAT

8
MILLINGWHEAT| FUTURESCONTRACTSPECIFICATIONS

UNITOFTRADING FIFTYTONNES

Originstenderable MillingWheatfromanyEUorigin

MillingWheatofsound,fairandmerchantablequality.Discountsareapplicabletothedifference
Quality
betweenstandardanddeliveredquality
January,March,May,NovemberuntilMay2015andthenSeptember,December,MarchandMay
DeliveryMonths
fromSeptember2015onwards,suchthattwelvedeliverymonthsareavailablefortrading

PriceBasis EuroandEurocentspertonneinanapprovedpublicsiloinRouen,France

MinPriceMovement(TickValue) 25eurocentspertonne(12.50)

LastTradingDay 18.30onthetenthcalendardayofthedeliverymonth

NoticeDay Thefirstbusinessdayfollowingthelasttradingday

DeliveryPeriod Anybusinessdayfromthelasttradingdaytotheendofthespecifieddeliverymonth

10.4518.30(Paristime);3.45am 11.30am(ChicagoTime).Settlementperiod:last10minutesof
TradingHours
trading

Algorithm Pricetimetradingalgorithm,withprioritygiventothefirstorderatthebestprice

9
RAPESEEDFUTURES
Supplyanddemand:
Seasonality:Europeanrapeseedcropmainharvestin
July/August
Rapeseedisamustardcropgrownprimarilyforitsseed
Rapeseediscrushedintomealandoil.Oilisusedin
foodandindustrialoils(biodiesel),mealinanimalfeed.
MainEuropeanproducersareGermany,France,Poland,
UK.WorldwidethebiggestexportersareCanada,
France,Ukraine.Japan,GermanyandMexicoareamong
biggestimporters

Futuresmarket:
2014:FuturesADV7,000lots.OptionsADVis1,000.
TotalADVis400,000tons.
RapeseedfuturesADV+67%overthelast5years

10
 Volume Volume

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150000
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250000
300000

Jan08
Jan08
Mar08
Mar08
May08
May08
Jul08
Jul08
Sep08
Sep08
Nov08
Nov08

Interest
Jan09
Jan09
Series1

Mar09
Mar09
May09
May09
Jul09
Jul09
Sep09
Sep09
Nov09

RapeseedOptionsOpen
Nov09
Jan10

RapeseedOptionsVolume
Jan10
Mar10
Series5

Mar10
May10
May10
Jul10
Jul10
Sep10
Sep10
Nov10
Nov10
Jan11
Jan11
Mar11
Mar11
May11
May11
Jul11
Jul11
Sep11
Sep11
Nov11
Nov11
Jan12
Jan12
Mar12
Mar12
May12
May12
Jul12
Jul12
Sep12
Sep12
Nov12
Nov12
Jan13
RAPESEED |VOLUMEANDOI

Jan13
Mar13
Mar13
May13
May13
Jul13
Jul13
Sep13
Sep13
Nov13
Nov13
Jan14
Jan14
Mar14
Mar14
May14
May14
Jul14
Jul14
Sep14
Sep14
Nov14
Nov14
Jan15
Jan15
0
0

20000
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80000

100000
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120000
140000

Openinterest Openinterest
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CANADIANCANOLAVSEUROPEANRAPESEED

12
RAPESEEDMEALANDOIL| NEW
Supplyanddemand:
Growingsupply&demandandhighpricevolatilityledto
launchofMealandOil
LackofeffectivehedgingtoolsinEuropeallows
opportunityforuserstohedgecrushingmargin
AllowsEuronextcommoditiestoentertheenergysector
byofferingEuropeanoilplayersariskmanagement
solutionfortheirbiodieselexposure
Futuresmarket:
Strongindustrysupportandalargerapeseeduserbase
andbrokercommunitytohelpbuildliquidity.

13
RAPESEED |MEALCONTRACTSPECIFICATIONS
UNITOFTRADING THIRTYTONNES
Originstenderable AnyOrigin
RapeseedextractionmealfromnonGM,doublezerorapeseedvarietiesasperEUregulationswithsound,
fairandmerchantablequality,andhavingthefollowingspecifications:
Quality
proteinandfatcombinedcontent34.5%
watercontentbasis12.5%andmaximum13%

DeliveryMonths September,December,MarchandJunesuchthattendeliverymonthsareavailable

EuroandeurocentspertonneFOBbargeatoneofthefollowingdesignatedports:AntwerpandGhentin
PriceBasis
Belgium,Neuss,Spyck,MainzandMannheiminGermany,RotterdaminTheNetherlands.
MinPriceMovement
25eurocentspertonne(7.50)
(TickValue)
Thelastdayofthemonthprecedingthedeliverymonth.Ifitisanonworkingday,thefirsttradingday
LastTradingDay
priortothisday.
NoticeDay Thefirstbusinessdayfollowingthelasttradingday
Loadingcancommenceonanybusinessdayfromthetenderdayuptofivebusinessdaysbeforetheendof
DeliveryPeriod
thespecifieddeliverymonth
10.4518.30(Paristime);3.45am 11.30am(ChicagoTime).Settlementperiod:last10minutesoftrading
TradingHours

Algorithm Pricetimetradingalgorithm,withprioritygiventothefirstorderatthebestprice

14
RAPESEED |OILCONTRACTSPECIFICATIONS
UnitofTrading TWENTY tonnes
Originstenderable AnyOrigin
Crudedegummedrapeseedoilofgoodmerchantablequality,guaranteedunbleached,producedfromnon
GMdoublezerorapeseedvarietiesasperEUregulationsofsound,loyalandmerchantablequality,all
dutiesandtaxiespaid,andmeetingthefollowingspecifications:
f.f.a (asoleicacid,calculatedonamolecularweightof282)maximum1.75%
Quality
Moisture,volatilematterandimpuritiesmaximum0.4%
Erucic acidmaximum2%
Flashpointminimum250F(121C)
Lecithin(expressedinphosphorus):maximum300ppm

DeliveryMonths September,December,MarchandJunesuchthattendeliverymonthsareavailable

EurosandeurocentspertonneFOBbargeorseavesselatoneofthefollowingdesignatedports:
PriceBasis
Amsterdam,RotterdaminTheNetherlands,AntwerpandGhentinBelgium.
MinPriceMovement
25eurocentspertonne(5)
(TickValue)
Thelastdayofthemonthprecedingthedeliverymonth.Ifitisanonworkingday,thefirsttradingday
LastTradingDay
priortothisday.
NoticeDay Thefirstbusinessdayfollowingthelasttradingday
Loadingcancommenceonanybusinessdayfromthetenderdayuptofivebusinessdaysbeforetheendof
DeliveryPeriod
thespecifieddeliverymonth
10.4518.30(Paristime);3.45am 11.30am(ChicagoTime).Settlementperiod:last10minutesoftrading
TradingHours

Algorithm Pricetimetradingalgorithm,withprioritygiventothefirstorderatthebestprice

15
CORNFUTURES
Supplyanddemand:
Seasonality:EuropeancorncropharvestismidAugust
throughlateOctober.
Worldproductionofcornis806milliontonnes.EUgrows
8%ofworldscorn.EUtypicallyselfsufficientbuthave
movedtoimportingfromSouthAmerica.
2majorareasofproduction West:FranceandItaly.
East:HungaryandRomania.
Cornisoneoftheglobesmostwidelyusedfoodstaples.
Mainuses:starch,food,animalfeed,ethanol
Futuresmarket:
2014:FuturesandoptionsADVis2,500.

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 Volume

0
100000

10000
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Jan10 90000
Mar10

May10

Jul10

Sep10

Nov10

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Mar11
CornFuturesVolume

May11

Jul11
CornFuturesOpenInterest

Sep11

Nov11

Jan12

Mar12

May12

Jul12

Sep12

Nov12

Jan13

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Sep13

Nov13
CORN |FUTURESVOLUMEANDOI

Jan14

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May14

Jul14

Sep14

Nov14

Jan15
0
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Openinterest
CORNFUTURES| CONTRACTSPECIFICATIONS
UNITOFTRADING FIFTYTONNES
Originstenderable CornfromanyEUorigin
Yellowand/orredcorn,sound,fairandqualityofthefollowingstandardMoisture:basis15%,max15.5%
Quality Brokengrains:basis4%,max10%Sproutedgrains:basis2.5%,max6%Grainadmixture:basis4%,max5%
Otherimpurities:basis1%,max3%

DeliveryMonths January,March,June,AugustandNovembersuchthattendeliverymonthsareavailablefortrading

PriceBasis Euroandeurocentspertonne,inanapprovedsiloon Atlantic

MinPriceMovement
25eurocentspertonne(12.50)
(TickValue)
18:30onthefifthcalendardayofthedeliverymonth(ifnotabusinessday,thenthefollowingbusiness
LastTradingDay
day)
NoticeDay Thefirstbusinessdayfollowingthelasttradingday
DeliveryPeriod Thespecifieddeliverymonth
TradingHours 10.4518.30(Paristime).3.45am 11.30am(ChicagoTime)Settlementperiod:last10minutesoftrading
Algorithm Pricetimetradingalgorithm,withprioritygiventothefirstorderatthebestprice

18
DAIRYLAUNCH
Euronextwilllaunchadairyderivativescomplexinspring
2015. Thefullsuiteoffuturesandoptionswillcoverthe
threekeydairyproductscurrentlytradedinEuropeand
internationally: unsaltedlacticbutter;skimmedmilkpowder;
andsweetwheyfoodgradepowder.
On31March2015,milkquotas,originallyinitiatedunder
theEUsCommonAgriculturalPolicy,willexpireleadingto
liberalizationofproductionandpotentialincreasedvolatility
intheEuropeandairyindustry.
TheEuropeanmarketistheworldleaderindairyproduction
andthesecondlargestexporterofdairyproductsworldwide.
Globaldemandformilkisincreasingwhilstsupplychainscan
beunpredictable.
NewproductswillallowtheEuropeandairycommunityto
hedgeitsexposuretopricefluctuationsinthisvolatilemarket.
Thisnewcomplexwillallowtheindustrytobettermanage
theirriskinatransparent,secure,regulatedandliquidmarket.

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COMMODITIES| KEYINITIATIVES
Euronexttocontinuegrowingpresenceinthemajorcommodity
indicesaftersuccessfulinclusionintheRogersInternational
CommodityIndexandS&PWorldCommodityIndex.Currently
intalkswithotherbenchmarkcommodityindexprovidersfornew
inclusionsandindexofferings.

Euronexttocontinuetheinternationalisation
Euronextcommodity
ofthecommodityfranchisewithongoing
grouplookingtodiversify partnershipdiscussionswithglobal
fromcoreAgricultural exchanges.Euronextannouncedon16th
Februaryapartnershipagreementwith
offeringandmoveintothe AfricasleadingAgriculturalCommodity
energyandmetalsspace. exchange,theJSE.

20
CONTACT
NicholasKennedy
DirectorHeadofBusinessDevelopment
CommodityDerivatives
ParisOffice
+33149271927
nkennedy@euronext.com
Thispublicationisforinformationpurposesonlyandisnotarecommendationtoengageininvestmentactivities.Thispublicationisprovidedas
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https://www.euronext.com/termsuse.

2015,EuronextN.V. Allrightsreserved.

22
Where to from here ?

OpportunitiestointroducearangeofcashsettledEURONEXT
productsontheJSE
AlreadyhaveSARBapprovaltoproceed
EURONEXTandJSEagreementsignedoff
Confirmsupportfrominterestedclients werequireyour
feedbackandcommitment!
Identifytheproductswherethereisdemand
Presentthelevelofinteresttomarketmakerstosecuretheir
supportandcommitmenttoprovideliquidity
MarketMakersprogressinternalapprovals
Agreecontractspecifications
Introducethecashsettledderivativecontracts
Lookingforwardtoyoursupport!

Pleasesendyourcommitmentthroughonemailto:
commodities@jse.co.za
ChrisSturgess|Director:Commodities|CapitalMarkets
Tel:+27115207039
Email:chriss@jse.co.za