MINNEAPOLIS GRAIN EXCHANGE ANNOUNCES
EXCHANGE FOR RISK (EFR) IN NATIONAL CORN INDEX AND NATIONAL SOYBEAN
INDEX FUTURES - April 10, 2003
MINNEAPOLIS—The Minneapolis Grain Exchange (MGEX) owners have
approved rules that allow Exchange For Risk (EFR) transactions in
National Corn Index (NCI) and National Soybean Index (NSI) futures,
effective May 1, 2003.
An EFR is an ex-pit transaction that involves the exchange of a
futures position for an over-the-counter (OTC) position. These
transactions provide market participants a way to initiate or unwind
existing or new OTC positions and are acceptable for OTC derivatives
that have a reasonable price correlation to the NCI or NSI futures
"NCI and NSI futures offer unique price protection opportunities
for a wide range of users, including over-the-counter derivative
providers,” said Ray Lottie, chairman of the MGEX board of
directors and manager of cereal and eastern grain operations for
General Mills. “The Exchange For Risk feature will make
our financially settled corn and soybean contracts even more user-friendly
for OTC providers and their customers."
NCI and NSI futures and options were launched in February 2002 on
MGEX’s electronic trading platform, MGEXpress®.
The exchange is adding financially settled Hard Winter Wheat Index
(HWI) futures and options to its portfolio of electronically traded
products on May 9, 2003.
MGEX, established in 1881, is the only market for hard red spring
wheat, NSI and NCI futures and options. For more information
about MGEX, visit www.mgex.com.