Euronext and CME Group partnered to launch mirrored spread contracts using each other’s market data, which was made known by Oleksandr Bobilyov, Euronext and Eric Hasham, CBOT, during Trend&Hedge Club on 4 Sep 2024.

The first announcement of the launch of the spread contracts was on 28 Aug and the first trading day is scheduled on 14 Oct. There will be 3 spread contracts: Euronext Milling Wheat vs Chicago Wheat, Euronext Milling Wheat vs KC HRW Wheat and Euronext Milling Wheat vs European Corn. 

“As to specifics of such contracts operation, daily settlement prices will be calculated at the end of each day at 18:30 Central European Time (CET) (-1 hour to Ukrainian time)”, - said O. Bobilyov.

A spread contract is a financially settled futures contract with an underlying price that is differential between two different securities. 

Euronext spread contracts will be priced in euros and cleared through Euronext Clearing, while CME Group spread contracts will be priced in U.S. dollars and cleared through CME Clear.

“Trading these spread contracts offers several advantages, including better margin efficiency, reduced execution and currency risk, lower transaction costs, and extended trading hours”, – speakers specified.