Hanover pig future quits pig delivery
The RMX Hog Future in Hanover, Germany, will quit pig deliveries as of the end of November 2006, after current contracts will have ended.
In the new ‘cash settlement’ system RMX, short for Risk Management Exchange, will not be compelled to bring the pigs physically to the buyer at the end of the future contract.
Pig index
Buying off the debt will be all that is necessary, on the basis of a weekly pig index – the RMX Hog Index (HOX).
For creating this index, both Geman and foreign pig prices are included, for instance from Austria, Belgium and the Netherlands.
It is expected that the new system will save a lot of (administrative) work.
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