NEW YORK Crunch Risk LLC traded contracts representing 1,400 gross tons on CME Group Inc.s new No. 1 busheling futures contract Thursday, it said, marking the first midsized trade for the fledgling product.
"This is the first sign of some volume going through, as modest as it might be, and thats a start. My sense is it will garner more and more interest," Crunch Risk chief executive officer André Marshall told AMM.
The Houston-based dealer/broker said it traded 700 tons per month for November and December at $357 per ton.
"There have been small screen trades in this contract since its inception a few weeks back, but this is the first sign of volume coming into the contract, and the first trade done through CMEs Nymex ClearPort vehicle," Marshall said in an e-mailed statement.
The new contract, which is financially settled against AMMs Midwest Ferrous Scrap Index for No. 1 busheling, launched on Sept. 10 and logged its first trading activity on its first day (amm.com, Sept. 11).
Thursdays trade marks Crunch Risks first participation in the new contract, but according to Marshall interest will likely pick up in the near future.
"Crunch Risk believes that the participation in this contract on the nearby months will be significant, and forward months have already garnered interest from customers," the company said.