On April 16, 2007, UxC and CME/NYMEX issued a joint press release
announcing the introduction of on and off-exchange traded uranium futures products on the CME Globex®
and CME ClearPort® electronic platforms on May 6 for the May 7, 2007 trade date. The initial product was
the NYMEX UxC Uranium U3O8 Futures Contract (UX).
CME UX Contract Links:
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 CME 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
- Trading Hours
- The contracts are available for trading on the CME Globex® and CME 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.
- 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
CME/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.