CHICAGO (Commodity Online):CME Group, the world's largest and most diverse derivatives marketplace, has announced the launch of trading and clearing services for cash-settled swap futures on the Dow Jones-UBS Commodity Index(SM) ( DJ-UBSCI(SM)). Trading for the DJ-UBSCI-based product is scheduled to begin Monday, December 7. Clearing services will be available through CME ClearPort, a set of flexible clearing services open to over-the counter (OTC) market participants to substantially mitigate counterparty risk and provide neutral settlement prices across asset classes.

The Dow Jones-UBS Commodity Index is a broadly diversified index that allows investors to track commodity futures through a single vehicle. It is composed of futures contracts on physical commodities including energy, grains, oilseeds, livestock and metals products.

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"There is strong growth in investor demand to bring these types of products now traded in over-the-counter markets onto a centrally cleared environment, where the risk of a counterparty default is greatly diminished," said Tim Andriesen, CME Group Managing Director of Commodity Products.

The commodity index swaps, which can be used as a complement to CME Group's benchmark Dow Jones-UBS Commodity Index futures contract, will be subject to position accountability, transaction reporting, and margining and risk management standards that are comparable to commodity index futures contracts.

These new OTC offerings are in addition to the successful grain calendar swaps launched in April.