ON vs. LN User-Defined Spreads coming to CME Globex
Effective Sunday, August 16 (trade date Monday, August 17), CME Group is launching an enhancement to User-Defined Spreads (UDS) functionality to support the Henry Hub Natural Gas options complex on CME Globex.
With this launch, you will be able to create and trade spreads between American- and European-style options.
|Contract Unit||10,000 million British thermal units (mmBtu).|
|Price Quotation||U.S. dollars and cents per mmBtu.|
|Trading Hours||CME Globex:||Sunday - Friday 6:00 p.m. - 5:15 p.m. New York time/ET (5:00 p.m. - 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT)||CME ClearPort:||Sunday - Friday 6:00 p.m. - 5:15 p.m. New York time/ET (5:00 p.m. - 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT)|
|Minimum Price Fluctuation||$0.001 per MMBtu|
|Product Code||CME Globex: NGCME ClearPort: NGClearing: NGTAS: NGT|
|Listed Contracts||The current year plus the next twelve calendar years. A new calendar year will be added following the termination of trading in the December contract of the current year.|
|Termination Of Trading||Trading of any delivery month shall cease three (3) business days prior to the first day of the delivery month. In the event that the official Exchange holiday schedule changes subsequent to the listing of a Natural Gas futures, the originally listed expiration date shall remain in effect. In the event that the originally listed expiration day is declared a holiday, expiration will move to the business day immediately prior.|
|Trade At Marker Or Trade At Settlement Rules||Trading at settlement is available for spot (except on the last trading day), 2nd, 3rd and 4th months and subject to the existing TAS rules. Trading in all TAS products will cease daily at 2:30 PM Eastern Time. The TAS products will trade off of a "Base Price" of 0 to create a differential (plus or minus 10 ticks) versus settlement in the underlying product on a 1 to 1 basis. A trade done at the Base Price of 0 will correspond to a "traditional" TAS trade which will clear exactly at the final settlement price of the day.|
|Settlement Procedures||Natural Gas Futures Settlement Procedures|
|Position Limits||NYMEX Position Limits|
|Exchange Rulebook||NYMEX 220|
|Block Minimum||Block Minimum Thresholds|
|Price Limit Or Circuit||NYMEX 220|
|Vendor Codes||Quote Vendor Symbols Listing|
|Grade And Quality||Natural Gas meeting the specifications set forth in the FERC-approved tariff of Sabine Pipe Line Company as then in effect at the time of delivery shall be deliverable in satisfaction of futures
contract delivery obligations.
Henry Hub Natural Gas (NG) Futures allow market participants significant hedging activity to manage risk in the highly volatile natural gas price, which is driven by weather-related demand. They also provide efficient transactions in and out of positions. Natural gas futures are:
Things to know about the contracts:
Read more about Henry Hub Natural Gas (NG) Futures