Atlantic Basin Coal Options

  • 5 Jun 2013
  • By CME Group
  • Topics: Energy

Coal Risk Management that Combines OTC Market with Central Counterparty Clearing

To complement our existing API2 and API4 futures contracts, CME Group offers cleared monthly, quarterly and calendar coal options. These products provide traders with the choice and flexibility of a truly global suite of coal products with the security that clearing through CME Clearport provides.

Key Service Features:

  • Trade execution in the OTC market with clearing through CME ClearPort
  • Straight-through processing capability from broker screens
  • Competitive fee schedule
  • Margin offsets across energy products

Calendar Options are physically delivered 'swaption' style contracts with an annual listing cycle:

  • Coal (API 2) CIF ARA (Argus/McCloskey) Option on Calendar Futures Strip (NYMEX Code: CLA)
  • Coal (API 4) FOB Richards Bay (Argus/McCloskey) Option on Calendar Futures Strip (NYMEX Code: RLA)

Quarterly Options are also physically delivered 'swaption' style contracts with a shorter listing cycle:

  • Coal (API 2) CIF ARA (Argus/McCloskey) Option on Quarterly Futures Strip (NYMEX Code: CQA)
  • Coal (API 4) FOB Richards Bay (Argus/McCloskey) Option on Quarterly Futures Strip (NYMEX Code: RQA)

Monthly Options are cash settled "Asian style" options with a monthly listing cycle.

  • Coal (API 2) CIF ARA (Argus/McCloskey) Option (NYMEX Code: MTO)
  • Coal (API 4) FOB Richards Bay (Argus/McCloskey) Option (NYMEX Code: MFO)

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