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To: Goose94 who wrote (12942)	5/20/2015 7:30:06 AM
From: Goose94	Respond to of 202936

CME Group, With JPM Nod, to Launch Zinc Futures Contract on the COMEX CME Group Inc said on Monday it would launch a zinc futures contract next month, stepping up a global battle for metals market share with the London Metal Exchange amid expanding Asian markets.CME's announcement, which included a statement from JP Morgan Chase & Co expressing strong support for the move, said the new zinc contract will begin trading June 29. The first available U.S. delivery was targeted for October, pending regulatory reviews, CME said. The statement did not explain JPMorgan's role in the zinc contract, but a source familiar with the matter said JPMorgan "absolutely" intends to provide liquidity on the new market, adding to its existing market-making activities on the LME. A CME spokesman said the Wall Street bank, which sold most of its physical metals trading business last year, had "expressed an interest in participating in promoting the launch of the new contract." "We're pleased that CME Group has responded swiftly and decisively to industry feedback for a new and transparent North American benchmark for zinc," Michael Camacho, co-head of global commodities at JPMorgan, said in the CME statement. Zinc, used to prevent steel from rusting, is the third-most- actively traded metal on the LME, with 60.3 million tonnes changing hands on the exchange last month. That is slightly less than half as much as aluminum, exchange data show. The announcement, which coincides with the LME's annual Asia week conference, hosted by parent Hong Kong Exchanges & Clearing Limited, is the CME's latest effort to wrest market share from the 128-year-old LME, which has long dominated global trading. While CME's copper contract has made significant gains over the LME's largely due to growing volume during Asian trading hours, its Midwest aluminum futures contract has failed to gain much liquidity since its launch a year ago. The CME "wants a piece of the action," a senior trader at a commodities brokerage said. It is a battle for share, rather than a bet on new growth, since "the pie isn't getting bigger, or not yet it isn't," the trader said. LME zinc trading volume rose by 2.2 percent last year, exchange figures show. The CME futures will be priced in U.S. dollars and each contract will represent 25 tonnes.