The Chicago Board of Trade announced today that it has successfully launched clearing services for two new over-the-counter (OTC) Ethanol Calendar Swap contracts with the clearing of 60 contracts last week. The new products, forward and previous month calendar swaps, are based on the price of CBOT Ethanol futures contracts and are the first exchange-cleared OTC products to be specifically tailored for use in the ethanol industry.

CBOT Senior Vice President of Business Development, Robert D. Ray said, “As the ethanol market continues to grow and mature, the CBOT, in close collaboration with our clients will continue to create new and innovative opportunities and services for the ethanol industry. The CBOT Ethanol Calendar Swap contracts are a perfect example of this collaborative process, providing a standard, transparent reference price to the OTC market, while reducing counterparty risk.”

FC Stone Senior Vice President, Eric Bowles said, "FC Stone is pleased that the CBOT has begun offering clearing services for OTC Ethanol Calendar Swaps. We look forward to utilizing this service for valuing our OTC positions and creating capital efficiencies in this rapidly expanding market."

CBOT Ethanol Calendar Swap OTC transactions take place “off exchange” – away from the Exchange’s trading environment – where they are privately negotiated by counterparties.

After negotiations are complete, the transaction is submitted to a CBOT clearing firm where it is cleared by the Exchange’s clearing services provider. Clearing hours will be 6:36 p.m. CT through 4:00 p.m. CT, Sunday through Friday.

For each listed Ethanol futures contract, there will be a corresponding previous and forward month OTC Ethanol Calendar Swap contract.