CME Group to Expand Expiries for its Fastest Growing Energy Products

Rhea-AI Summary

CME Group announced the expansion of its short-term WTI Crude Oil options to include Tuesday and Thursday expiries, enhancing market liquidity and risk management. The new contracts will start trading on July 22, 2024, providing more flexibility for traders to hedge and adjust their portfolios throughout the week.

Positive

• Record demand for Weekly WTI Crude Oil options indicates market confidence and growth opportunities.

• Introduction of Tuesday and Thursday expiries offers enhanced flexibility for clients to manage short-term crude oil price exposure.

• Increased market participants trading Weekly WTI products depict a growing need for efficient price risk management.

• Expansion of options expiries to cover all business days of the week supports better liquidity provision and risk mitigation.

Negative

• None.

Tuesday and Thursday Weekly WTI Crude Oil Options to Launch July 22, 2024

CHICAGO, May 7, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that it will expand its suite of short-term WTI Crude Oil options to include Tuesday and Thursday expiries, pending regulatory review. With the addition of these new contracts, which will begin trading on July 22, 2024, Weekly WTI Crude Oil option expiries will now be available every day of the business week, Monday through Friday.

"In an increasingly volatile and uncertain environment, we are seeing record demand for our Weekly WTI Crude Oil options, which provide the most efficient source of liquidity to manage short-term crude oil price exposure," said Peter Keavey, Global Head of Energy at CME Group. "With the addition of Tuesday and Thursday expiries, clients have additional flexibility to adjust their portfolios and execute timely hedging strategies across the entire trading week. The number of market participants trading a Weekly WTI product is up 25% year-over-year, and that is set to grow as the need to manage price risk has never been more essential."

With the introduction of Tuesday and Thursday WTI Crude Oil options, CME Group now has options expiring on each business day of the week – both demanders and providers of liquidity can use these options to better manage exposure and more directly hedge or provide liquidity around specific near-term market events, such as an OPEC decision or a Fed meeting," said John Calvaruso, Senior Director of Commodity Trading and Risk Analytics at LS Power.

Weekly WTI Crude Oil options are the fastest growing energy products at CME Group, reaching record ADV of over 23,000 contracts in April and record average daily open interest of over 44,000 contracts. CME Group launched Monday and Wednesday expiries in July 2023, which recently surpassed ADV of 10,000 contracts.

Weekly WTI Crude Oil 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.

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SOURCE CME Group

FAQ

<p>When will the new Tuesday and Thursday expiries for WTI Crude Oil options start trading?</p>

The new contracts will begin trading on July 22, 2024, pending regulatory review.

<p>What are the benefits of the expansion of Weekly WTI Crude Oil options by CME Group?</p>

The expansion provides clients with additional flexibility to adjust portfolios and manage short-term crude oil price exposure throughout the trading week.

<p>What are the current trading volumes for Weekly WTI Crude Oil options at CME Group?</p>

Weekly WTI Crude Oil options reached a record ADV of over 23,000 contracts in April with record open interest of over 44,000 contracts.

<p>Who are the key individuals mentioned in the press release regarding the expansion of energy products?</p>

Peter Keavey, Global Head of Energy at CME Group, and John Calvaruso, Senior Director of Commodity Trading and Risk Analytics at LS Power.

<p>Where can I find more information about Weekly WTI Crude Oil options?</p>

For more information, please visit the CME Group website.