The exchange has fended off competition from CME Group, the owner of the Chicago Board of Trade, in western Europe, but CME has established derivatives covering fast-growing Russian and Ukrainian grain markets. "The longstanding liquidity of the milling wheat contract shows that it is an essential tool for the European grain sector," Euronext commodities head Nicholas Kennedy said.
"Our objective is that market participants in the Black Sea region use this liquid and transparent tool as a benchmark," he told Reuters at a grain industry event in Paris. Kennedy had said a year ago that Euronext was considering possibilities for expanding its presence in the Black Sea zone, including by developing swaps, like those developed by CME.
A year ago, CME launched derivatives based on S&P Global Platts' price benchmarks for Russian wheat and Ukrainian corn, after failing to establish liquidity for its Black Sea grain futures with physical delivery. The cash-settled derivatives are effectively bilateral swaps that are cleared by CME. They have attracted some liquidity, particularly in Russian wheat.