FAQ: Southern Yellow Pine futures and options

CME Group launched Southern Yellow Pine futures and options on futures on the CME Designated Contract Market (DCM) with a first trade date of March 31, 2025. The May 2025 contract was the first listed month available for trading and clearing.

The Southern Yellow Pine futures contract is 22,000 board feet and cash settled to the FP-LBR-2227 Kiln-dried Southern Yellow Pine (eastside) 2 2×4 rl fob mill, Daily Price from Fastmarkets.

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Futures: The tick size for futures is $0.50 per thousand board feet (mbf) ($11 per contract).

Options: The tick size for options is $0.10 per mbf ($2.20 per contract).

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The product code is SYP for futures and options.

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Southern Yellow Pine futures are CME Rulebook chapter 64 and Southern Yellow Pine options on Southern Yellow Pine futures are CME Rulebook chapter 64A.

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This contract is financially settled to the FP-LBR-2227 Kiln-dried Southern Yellow Pine (eastside) 2 2×4 rl fob mill, Daily Price from Fastmarkets.

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Yes, price limits will be adjusted daily and based on 10% up or down of the prior day’s settlement price for each contract month.

Circuit breakers will also be established at 5% and determined by looking at a percent move during a rolling 60-minute window. If the market moves 5% within that window, the market will pause for two minutes before trading is resumed.

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The contracts are available for trading on the Globex electronic trading platform and for submission for clearing via ClearPort.

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Trades may be entered on ClearPort starting Sunday 5:00 p.m. – Friday 5:45 p.m. CT with no reporting Monday – Thursday from 5:45 p.m. – 6:00 p.m. CT.

Trades may be entered on Globex Monday – Friday: 9:00 a.m. – 3:05 p.m. CT.

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Subject to certain requirements such as eligibility and minimum size, the futures and options contracts can be privately negotiated via brokers as a block trade and submitted into  ClearPort for clearing.

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There are minimum quantity and reporting time requirements. The minimum block size for futures is 20 lots and for options is 40 lots. Trades must be reported within 15 minutes of execution for futures and options.

Firms need to be classified as Eligible Contract Participants (ECP) to engage in block trades. The definition of ECP can be found in Section 1a(18) of the Commodity Exchange Act.

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Yes, committed cross (c-cross) and Globex cross (g-cross) are permitted futures crossing protocols for participants who engage in pre-execution communications pursuant to Rule 539. Pre-execution communications allow for size, price and direction to be discussed prior to the entry of orders into Globex.

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Southern Yellow Pine spot month position limits are 2,000 contracts. The spot month begins on the first business day of the contract month.

Single month position limits and all month accountability levels are 4,000 contracts. The reportable level is 25 contracts.

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The futures listing cycle includes expiries in January, March, May, July, September and November, listed for seven months.

The options listing cycle includes five listed contracts in the January, March, May, July, September and November cycle and one month of February, April, June, August, October and December.

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Yes, you can EFP a financially settled contract.

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Contact us with questions at Lumber@cmegroup.com.

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