The measures of a robust futures contract have certain key characteristics, including liquidity (the ability to buy and sell contracts easily), and transparency (where relevant information is fully and freely available to the public). Liquidity on COMEX is best viewed by Average Daily Volume (ADV). Total COMEX Copper Futures ADV in 2018 has dramatically increased since 2014. 2018 ADV equates to 1.5 million metric tons traded every day
COMEX Copper Options have shown exponential growth in ADV and Open Interest.
With the onset of electronic trading across financial markets, CME Group introduced CME Globex to the trading world and volume has migrated to the electronic trading screen. CME Globex is the premier electronic trading system providing global connectivity to a wide array of futures and options across all asset classes. As of February 2019, 99% of total COMEX Copper futures and 71% of COMEX Copper Options are transacted electronically.
Electronic ADV/Total ADV
Real Time Transparency
Robust market depth for COMEX Copper Futures and Options can be accessed nearly 24-hrs onscreen via CME Globex.
Transparency in Settlement Prices
Daily settlement prices for COMEX Copper Futures are derived solely from trading activity on CME Globex during the settlement period (12:59-13:00 ET). This ensures the most transparent settlement possible and can be traded onscreen as HGT (TAS-Trade at Settlement).
Electronic trading is transparent, can be accessed by all, and ensures all clients (whether commercial or financial in nature) receive the best available price when they interact with the market. With 99% of volume transacted taking place via CME Globex, total volume continuously and consistently increasing, around the clock liquidity and settlement prices based on electronically traded contracts, COMEX Copper is a key source of global price discovery, liquidity and transparency.
If you would like to speak to the metals team about copper futures and options please contact metals@cmegroup.com
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Read original article: https://cattlemensharrison.com/comex-copper-the-true-transparent-global-reference-price/
By: CME Group