MGEX CERTIFIES NEW FINANCIALLY SETTLED HARD WINTER WHEAT CONTRACTS;
LAUNCH DAY DETAILED - May 7, 2003
MINNEAPOLIS—The Minneapolis Grain Exchange (MGEX) announced
today that on May 6, 2003, the exchange certified to the Commodity
Futures Trading Commission (CFTC) that the rules and regulations
of its new financially settled hard winter wheat futures and options
comply with the Commodity Exchange Act (CEA) and its regulations.
The CFTC was also notified by MGEX that trading in the new contracts
commences on May 9, 2003.
The contracts, Hard Winter Wheat Index (HWI) futures and options,
will trade exclusively on MGEXpress®, the exchange’s electronic
trading platform. The MGEX board of directors and ownership
approved the rules and regulations of the contracts in April 2003.
MGEX also announced that Raymond Lottie, MGEX chairman of the board,
will ring the opening bell at 8:30 a.m. CDT on the MGEX trading
floor to commemorate the launch of the HWI contracts.
They will be the first financially settled wheat futures and options
traded in the U.S. The settlement index, the Hard Winter Wheat
Index (HWI), is a simple average of approximately 400 country elevator
bids collected daily by Data Transmission Network (DTN), an Omaha-based
electronic commerce and information services company.
HWI futures and options contracts will settle financially each calendar
month to a three-day average of the spot Hard Winter Wheat Index.
DTN collects elevator bids daily for hard red winter wheat and averages
them to arrive at the HWI. The contracts will reflect country-origin
pricing for hard red winter wheat. Because there is no delivery
alternative, futures and options contracts will expire simultaneously.
MGEX, established in 1881, is the only market for hard red spring
wheat, Hard Winter Wheat Index (HWI), National Corn Index (NCI)
and National Soybean Index (NSI) futures and options. For
more information about MGEX, visit www.mgex.com.