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12.02.26 - 15:30
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CME Explores First-Ever Rare Earth Futures Contracts (ZeroHedge)
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CME Explores First-Ever Rare Earth Futures Contracts
CME Group is drawing up plans for what could become the first-ever futures contract tied to rare earths, according to three people familiar with the matter, offering governments, companies and lenders a potential tool to manage exposure to a market long dominated by China, according to Reuters.
The proposed contract would track neodymium and praseodymium (NdPr), typically traded together and used to produce permanent magnets found in electric vehicle motors, wind turbines, drones and fighter jets. While discussions are ongoing, no final decision has been made. Liquidity remains a concern, as rare earth trading volumes are small compared with most established metals markets.
Rival exchange operator Intercontinental Exchange has also examined launching rare earth derivatives, though two sources said its efforts are at an earlier stage. CME declined to comment, and ICE did not respond to requests for comment.
Reuters writes that volatile pricin...
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