CBOT to launch OTC ethanol calendar swap contracts

Renewable Fuel News, November, 2006

An announcement today by the Chicago Board of Trade marks a new development in the continuing maturation of the market for ethanol contract trading.

The Chicago Board of Trade today announced plans to establish clearing services for two new over-the-counter ethanol calendar swap contracts. Over-the-counter transactions have become commonplace in energy sectors such as crude oil and natural gas.

CBOT Senior Vice President of Business Development Robert Ray said that the OTC swaps, which will include contracts for both forward and previous month calendar swaps, are the first exchange-cleared OTC products for the ethanol industry.

The exchange has scheduled the new products, based on the price of CBOT ethanol futures contracts, to be introduced on Dec 4.

The...

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