UMO

Nuclear Energy Institute - International Uranium Fuel Seminar

CME/NYMEX Uranium Futures (UX) Contract
CME/NYMEX Partners with Ux Consulting to Offer Uranium Futures Contracts

On April 16, 2007, UxC and NYMEX issued a joint press release announcing the introduction of on and off-exchange traded uranium futures products on the CME Globex® and NYMEX ClearPort® electronic platforms on May 6 for the May 7, 2007 trade date.

CME Group Links:

The CME Group provides additional information on Futures & Options.

NYMEX Links:

Please note that on January 15, 2010, the nymex.com website was deactivated and replaced by the http://www.cmegroup.com/ website.

NYMEX originally provided several additional documents explaining the new contracts. The first is a Frequently Asked Question (FAQ) sheet addressing common questions and the second is a copy of the contract specifications.

CME/NYMEX Press Releases

UxC has provided further discussion about the futures contacts and the uranium market in the April 16, 2007, May 7, 2007, and May 5, 2008, cover stories in the Ux Weekly.

Uranium Contract (UX) Overview

The New York Mercantile Exchange has partnered with the Ux Consulting Company, LLC (UxC) to provide financially settled on- and off-exchange traded uranium futures contracts. The two organizations are working together to serve the needs of utilities, consumers, uranium mining and other nuclear fuel companies, governments, banking, and financial institutions by creating a pricing benchmark for the rapidly expanding nuclear fuel industry.

The NYMEX uranium futures contract will provide the industry with a transparent pricing mechanism. The contract’s final settlement price is based on the UxC index, which for the past 20 years, has provided U3O8, or “yellowcake” pricing. This term came from early production methods of the compound that yielded a bright yellow product resembling cake batter. U3O8 is the most actively traded uranium-related commodity, and the UxC pricing index has been utilized by all major nuclear fuel market participants as well as the United States government and private business organizations.

Recent events affecting supply development and the need for additional clean energy sources, such as nuclear power, have created the desire for a more transparent forward price curve as well as increased risk management tools in a volatile uranium marketplace.

The uranium futures contract is available for trading on CME Globex® and clearing on NYMEX ClearPort®. The size of each contract is 250 lbs. and prices are quoted in U.S. dollars and cents. The final settlement price is the spot-month end price published by UxC.

Uranium Contract (UX) Specifications

Trading Unit
250 pounds of U3O8
Price Quotation
U.S. dollars and cents per pound
Minimum Price Fluctuation
$0.05
Trading Hours
The contracts are available for trading on the CME Globex® and NYMEX ClearPort® electronic trading systems from 6:00 PM Sundays through 5:15 PM Fridays, Eastern Time, with a 45-minute break each day between 5:15 PM and 6:00 PM.
Trading Months
60 consecutive months
Last Day of Trading
Trading terminates at the close of business on the last Monday of the contract month. If the last Monday in the contract month is not a business day, trading shall terminate on the last business day prior to the Monday that is not a business day.
Settlement
Financial, based on the spot month-end U3O8 price published by Ux Consulting Company, LLC.
Margin Requirements
Margins are required for open futures positions.
Trading Symbol
UX