CME Group Announces First Trades of Physically-Delivered Ethanol Futures & Options

Rhea-AI Summary

CME Group has launched new physically-delivered Ethanol futures and options, with the first five futures contracts traded on February 7, 2025. The contracts are sized at 42,000 gallons, aligning with CME's benchmark RBOB Gasoline futures and NY ULSD Heating Oil futures.

The new contracts feature enhanced specifications and complement CME's existing renewable fuel products portfolio. They are designed to help gasoline blenders and commercial users hedge price exposure and manage differentials between refined products more effectively.

The Denatured Ethanol futures and options are listed by and subject to NYMEX rules, offering market participants flexibility in delivery options. This launch strengthens CME Group's position as the world's leading derivatives marketplace, adding to its comprehensive range of global benchmark products across major asset classes.

Positive

• Launch of new physically-delivered Ethanol futures and options expanding product portfolio
• First trading activity recorded with 5 futures contracts
• Strategic alignment with existing RBOB Gasoline and NY ULSD Heating Oil futures (42,000 gallons)

Negative

• None.

CHICAGO, Feb. 10, 2025 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced its new physically-delivered Ethanol futures and options are now available for trading. A total of five futures contracts traded on February 7, 2025.

"We are pleased to see industry support for our latest Ethanol contracts, which have enhanced specifications and are complementary to our existing suite of renewable fuel products," said Peter Keavey, Global Head of Energy and Environmental Products at CME Group. "Ethanol is an increasingly important component of the transportation fuel mix, and the physically-delivered futures will allow gasoline blenders and other commercial users to hedge their price exposure and more effectively manage the differential between other refined products."

Ethanol futures are sized at 42,000 gallons, which is in line with CME Group's benchmark RBOB Gasoline futures and NY ULSD Heating Oil futures. Ethanol futures offer flexibility to market participants by providing options for delivery.

Denatured Ethanol futures and options are listed by and subject to the rules of NYMEX. For more information, please visit here.

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners. 

CME-G

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SOURCE CME Group

FAQ

When did CME Group launch its physically-delivered Ethanol futures trading?

CME Group launched trading of physically-delivered Ethanol futures on February 7, 2025, with five initial futures contracts traded.

What is the contract size for CME's new Ethanol futures?

CME's Ethanol futures contracts are sized at 42,000 gallons, matching the size of their RBOB Gasoline futures and NY ULSD Heating Oil futures contracts.

How do CME's new Ethanol futures benefit market participants?

The new futures allow gasoline blenders and commercial users to hedge price exposure and more effectively manage the differential between refined products.

Which exchange lists CME's new Denatured Ethanol futures and options?

The Denatured Ethanol futures and options are listed by and subject to the rules of NYMEX.

What makes CME's new Ethanol futures different from existing products?

The new Ethanol futures feature enhanced specifications and are physically-delivered, complementing CME's existing suite of renewable fuel products.