Report: CME seeks to revitalize uranium trading by launching physically delivered futures

TP ICAP brokerage's co-head of nuclear fuel business, John Perdue, stated that under the new contract, uranium will be stored at ConverDyn, one of the few facilities licensed to store the metal. The CME contract is based on uranium oxide (U3O8), or yellowcake, which has relatively low radioactivity. However, enriched uranium is highly radioactive and can be used for nuclear weapons, hence it is strictly regulated. The CME declined to confirm this move, but said: “We continue to engage with clients to understand their risk management needs.” (Reuters)