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Henry Hub Natural Gas Penultimate Financial 
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Henry Hub Natural Gas Penultimate Swap (Financial) futures are an outright natural gas contract between a buyer and a seller that offers opportunities for risk management of the highly volatile pricing of natural gas. The contract also:

  • Is similar to the Henry Hub Natural Gas futures contract but, since it settles financially one day earlier than the benchmark contract, it helps to offset the risk that market participants can incur upon the expiration of the natural gas options contract
  • Reflects a vigorous market based on the pricing relationships between Henry Hub and other important natural gas market centers in the continental United States and Canada.
  • Gives market participants increased flexibility to manage their risk with a cleared, financially settled instrument.

Things to know:

  • Can be traded off-exchange for clearing only or electronically via CME Globex
  • Price settlement of the penultimate swap futures contract is based on the settlement price of the natural gas futures contract on the next-to-last day of futures trading.

About Natural Gas
Natural gas accounts for almost a quarter of U.S. energy. There is a vigorous basis market based on the pricing relationships between Henry Hub and other important natural gas market centers in the continental United States and Canada.