CME Group plans physical uranium futures contract launch - Reuters

CME Group (NASDAQ: CME) plans to launch a physically settled uranium futures contract in the coming months, according to reporting from Reuters, citing three sources familiar with the plans. The new contract represents a departure from the exchange's existing financially settled uranium futures, which have experienced limited trading volumes.

The move aims to address rising institutional investor demand for physical uranium exposure in a market that has traditionally been thinly traded and opaque. CME's current uranium contract has seen limited open interest and liquidity.

The initiative comes as investor interest in nuclear fuel increases, driven by expectations of new reactor construction to meet climate targets and power energy-intensive data centers. The World Nuclear Association projects uranium demand to more than double by 2040.

The physically based futures contract could potentially attract more institutional capital into the uranium trading market, which has historically lacked the transparency and accessibility of other commodity markets.

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