CME Group to Launch Options on Bloomberg Commodity Index Futures on September 23

Rhea-AI Summary

CME Group, the world's leading derivatives marketplace, has announced the launch of options on Bloomberg Commodity Index (BCOM) futures on September 23, 2024, pending regulatory review. The company has also extended its license with Bloomberg for commodity index products through 2027. These new options contracts aim to provide market participants with additional flexibility in accessing broad market exposure and expressing views on commodity market movements.

The launch builds on the success of existing BCOM futures contracts, which have seen significant growth in 2024 with volume up 12% and open interest up 88% year-over-year. The new options are expected to offer greater potential capital and margin efficiency for commodity index trading strategies while providing similar exposure to OTC swaps.

Positive

• Launch of options on Bloomberg Commodity Index (BCOM) futures, expanding product offerings
• Extension of Bloomberg license for commodity index products through 2027
• BCOM futures contracts volume up 12% year-over-year in 2024
• BCOM futures contracts open interest up 88% year-over-year in 2024
• Potential for greater capital and margin efficiency in commodity index trading strategies

Negative

• None.

News Market Reaction

+1.56%

1 alert

+1.56% News Effect

On the day this news was published, CME gained 1.56%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

CHICAGO, Sept. 5, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that it will launch options on Bloomberg Commodity Index (BCOM) futures on September 23, pending regulatory review. The company also announced that it has extended its license with Bloomberg for commodity index products through 2027.

Options on BCOM futures will provide market participants a new way to access broad market exposure with additional flexibility to express a range of views on commodity market movements.

"We are pleased to announce the addition of options on BCOM futures to our suite of commodity index products, as well as the extension of our BCOM license renewal to continue to offer these important risk management tools," said Paul Woolman, Global Head of Equity Index Products at CME Group. "These new options contracts will build on the growing strength and liquidity of our existing BCOM futures contracts, which have seen a surge in volume and open interest in 2024 – up more than 12% and 88% year-over-year, respectively. The addition of options on BCOM futures will also offer greater potential capital and margin efficiency to commodity index trading strategies while providing similar exposure to OTC swaps."

"Bloomberg is proud to see the continued growth and popularity of our flagship BCOM index which is backed by exceptional research and data," said Umesh Gajria, Global Head of Index Linked Products, Bloomberg Index Services Limited. "This is evidenced by CME Group's launch of options on BCOM futures, extending their existing product suite offering investors additional opportunities to hedge and diversify their portfolios."

For more information on these products, please visit www.cmegroup.com/bcomoptions.

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

 

View original content:https://www.prnewswire.com/news-releases/cme-group-to-launch-options-on-bloomberg-commodity-index-futures-on-september-23-302238833.html

SOURCE CME Group

FAQ

When will CME Group launch options on Bloomberg Commodity Index futures?

CME Group plans to launch options on Bloomberg Commodity Index (BCOM) futures on September 23, 2024, pending regulatory review.

What is the growth rate of CME's BCOM futures contracts in 2024?

CME's BCOM futures contracts have seen significant growth in 2024, with volume up 12% and open interest up 88% year-over-year.

How long has CME Group extended its license with Bloomberg for commodity index products?

CME Group has extended its license with Bloomberg for commodity index products through 2027.

What benefits do the new BCOM options offer to market participants?

The new BCOM options offer market participants additional flexibility to express views on commodity market movements and potential for greater capital and margin efficiency in trading strategies.