This Record Speaks Volumes

Three times in early 2011 CME Group posted record volume for the global benchmark light sweet crude oil West Texas Intermediate (WTI) options contracts. On Feb. 23, WTI options reached a record 324,655 contracts, a 10.3-percent increase from the previous record. CME Group posted record volume of 294,411 WTI options contracts on Jan. 31, following the previous record of 290,365 on Jan. 28.

WTI futures also reached a record of 1,472,088 contracts on Jan. 28, nearly 50,000 more than the previous record of 1,423,536 contracts set on April 13, 2010.

"CME Group is the leading crude oil options marketplace for both WTI and Brent Crude Oil," says Joe Raia, managing director, energy and metals products at CME Group. "As unrest continues in key parts of the world, customers come to CME Group to manage their crude oil risk because of the depth of liquidity and unmatched transparency of our products."

WTI is the largest, deepest and most liquid global energy market benchmark, trading more than 1.1 million futures and options contracts daily, on average - more than double the size of its nearest competitor.

An Ultra Anniversary

In January, CME Group celebrated the launch of the one-year anniversary of the Ultra Treasury Bond contract - the fastest growing interest rate product ever launched by the CME Group exchanges.

The Ultra Bond was launched on Jan. 11, 2010, in response to strong customer demand for a contract that mimics the duration of a 30-year Treasury bond. Milestones include:

• Nearly 4,500 contracts changed hands on its first day of trading;
• First-quarter average daily volume surpassed 14,000 contracts;
• Fourth-quarter average daily volume exceeded 52,000 contracts;

On Nov. 24, the Ultra experienced record volume of 349,000 contracts traded, and record open interest of 380,000;

• As of Dec. 31, open interest was more than 307,000.

Watch Robin Ross, managing director of interest rate products, and Jonathan Kronstein, associate director of interest rate products, discuss the Ultra Bond anniversary.

All Natural

CME Group in early February launched three new natural gas futures, physically delivered at Pine Prairie Energy Center (PPEC): PPEC Physically Delivered Natural Gas Daily/Weekend Futures, PPEC Physically Delivered Natural Gas BALMO Futures and PPEC Physically Delivered Natural Gas Monthly Futures. They were designed to meet the fast-moving, short-term and long-term base load needs in today’s natural gas marketplace. The launch of these innovative contracts illustrates CME Group’s commitment to providing customers with access to the broadest array of products for managing global energy risk.

PPEC is a highly-flexible salt cavern storage facility located in Evangeline Parish, La. It is strategically located 50 miles from the Henry Hub natural gas pricing point, and has nine interconnects to eight major pipelines that service the Gulf Coast, Midwest, Northeast and Southeast markets.

The contracts are traded on the NYMEX floor and electronically through CME Globex, and they are available for clearing services through CME ClearPort.

To learn more, visit www.cmegroup.com/trading/energy.

Derivatives Exchange of the Year

Risk Magazine named CME Group the Derivatives Exchange of the Year in its annual Risk Awards. The awards recognize best practices and innovation in the risk management and derivatives markets in more than 20 categories across banks, brokerage houses, investors and market providers.

"Being named Derivatives Exchange of the Year is an acknowledgement not just of the success of our exchange, but of the importance of our industry in the rapidly transforming global financial marketplace," said Craig Donohue, CME Group chief executive officer, at the Risk Award Dinner in London. "This is a tremendous achievement for our company and our employees."

The award's judging criteria include risk management, client service, forward-thinking on regulatory issues and liquidity provision. The awards were judged by a Risk Magazine editorial panel of senior editors and staff writers.

Learn more about Risk Magazine and its annual awards at www.risk.net.

Duffy Testifies Before Congress

CME Group Executive Chairman Terry Duffy on Feb. 15 testified before the U.S. House Committee on Financial Services to help assess the regulatory, economic and market implications of the Dodd-Frank Act. Just days after presenting similar testimony to the House Committee on Agriculture on Feb. 10, Duffy addressed several areas that will be impacted by the Dodd-Frank rulemaking process.

CME Group encourages regulatory approaches that will bring greater transparency to derivatives markets - without damaging the well-functioning, regulated futures markets and clearing houses. As Duffy testified, CME Group's markets comprise a "highly successful principles-based regime that has permitted U.S. futures markets to prosper as an engine of economic growth for this nation."

Reaching Globally

Two significant recent hires at CME Group’s London office signify the company's commitment to further globalizing its business and placing leadership in regions with great opportunities for growing markets and client base.

Roger Rutherford, managing director, global head of FX products, is responsible for leading CME Group’s global FX business line, the company's fastest-growing business line during non-U.S. hours. Rutherford’s deep knowledge in this market will play a key role as CME Group continues to develop and diversify its global business.

Harriet Hunnable, managing director, metals products, has more than 20 years of experience in global metals markets and brings deep market expertise and extensive client relationships to CME Group. She will be responsible for developing and executing the company's global metals business strategy.