Nymex Launches COP Futures Contract

Nymex plans to introduce a Colombian peso futures contract February 24, its first expansion into LatAm financial derivatives. It will trade and clear contracts developed by the Marco Polo Network platform. “It’s been a very active market, but underserved,” says Sergio Villamizar, head of derivatives at Marco Polo. “There’s a need for participants to hedge risk in it.” The aim is to provide a stable and regulated platform for COP, which participants have previously needed to rely on OTC trades for hedge. Villamizar says Marco Polo is working on launching other Nymex contracts for LatAm, declining to identify specifics. The Chicago Mercantile Exchange, in discussions to acquire Nymex, is also expanding in LatAm through a partnership with Brazil’s BM&F.