In an ever-changing marketplace, our customers are turning to us to provide the products, technology and information they need to effectively hedge the risks facing their industries. When it comes to precious metals, it’s crucial for us to keep an open dialogue with the bankers, miners, jewelers and retail traders who want our products to offer the protection they’re looking for.
“In the first half of 2014, our customers told us one area of the precious metals market they felt was underserved was related to the ability to make or take delivery in high grade kilo bars via a physically-settled gold contract,” says ICE Futures U.S. President Ben Jackson.
He continued, “They told us they wanted a more efficient delivery mechanism and a more precise hedging vehicle. That type of feedback is exactly what we need to innovate solutions in today’s market. We can’t successfully innovate in a vacuum, so we look to our customers to tell us what they need to manage the risks they’re facing.”
In the case of gold contracts, that feedback led to the development of ICE’s mini-gold futures. Prior to the innovation of the ICE mini-gold contracts, it was neither highly efficient nor effective to deliver kilo bars against gold contracts.
“With mini-gold contracts, we enhanced the product specs and simplified delivery procedures to ensure receivers could take delivery of a single kilo bar for each futures contract,” said Jackson. “As a result, we now offer the most effective physically delivered mini-gold contract able to facilitate transactions in high grade kilo bars, while enabling efficient hedging or exposure to gold prices.”
Trading Mini-Gold at ICE Futures U.S.
ICE mini-gold futures and options trade alongside our equity derivatives, FX products and the rest of our commodity product suite to give traders easy access to precious metals on the same platform as our other asset classes.
Whether it’s through the front-end technology and execution via WebICE or via your preferred ISV, [research on ICE Option Analytics or communication between brokers and trading desk via ICE Chat,] metals market participants are able to easily trade mini-gold contracts on ICE.
Interested in Trading Mini-Gold Contracts?