When people think of platinum, jewelry and the automobile industry are usually the first associations that come to mind. In actuality, however, platinum is found in one-fifth of everything we use in our daily lives. It is no surprise, then, that platinum’s multiuse functionality has earned its increased importance in the futures markets over the past few years. Platinum futures can be used as a hedging tool for both producers and consumers of platinum alike. Platinum futures also offer advantages like central clearing and transparency of price among traders. Due to scarce production, limited suppliers, and its role as an industrial metal, platinum futures prices can exhibit volatility.
|Platinum Contract Specifications|
|Venue||CME Globex, CME ClearPort, Open Outcry (New York)|
|Trading Hours||CME Globex: Sun–Fri 5:00pm–4:15pm CT with a 45-minute break each day beginning at 4:15pm|
|CME ClearPort: Sun–Fri 5:00pm–4:15pm CT with a 45-minute break each day beginning at 4:15pm|
|Open Outcry: Mon–Fri 7:20am-12:05pm CT|
|Contract Size||50 troy ounces|
|Price Quotation||U.S. Dollars and Cents per troy ounce|
|Minimum Fluctuation||$0.10 per troy ounce|
|Termination of Trading||Trading terminates on the third last business day of the delivery month.|
|Listed Contracts||Trading is conducted over 15 months beginning with the current month and the next two calendar months before moving into the quarterly cycle of January, April, July, and October..|
|Settlement Procedure||Daily Platinum Futures Settlement Procedure
Final Platinum Futures Settlement Procedure
|Delivery Period||Delivery may take place on any business day beginning on the first business day of the delivery month or any subsequent business day of the delivery month, but not later than the last business day of the current delivery month.|
|Grade and Quality Specifications||Platinum delivered under this contract shall be a minimum of 99.95% pure.|
|Exchange Rules||These contracts are listed with, and subject to, the rules and regulations of NYMEX.|
Platinum is a very rare metal and considered to be more valuable than gold. It is very resistant to both natural elements and electricity. Platinum mines exist across the globe, but its main production is concentrated in South Africa accounting for nearly 80% of the world’s supply. Russia and North America account for the remaining platinum supply. The largest consumer section for platinum is the international jewelry industry followed by auto catalysts. The United States is a heavy importer of platinum, with jewelry and automotive industries dominating market demand.
Last updated May 2013
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