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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.
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