Over the last few years, due to the margin and other efficiencies that CME Group offers, open interest in BCOM futures and swaps products have grown to 250K contracts on average in Q3 2024, up 15% increase vs. 2023. Active participants in these markets are eager to see more growth with the introduction of options on Bloomberg Commodity Index futures. 

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Details of the methodology of the Bloomberg Commodity Index (BCOM) can be found on the Bloomberg website.

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CME Group will provide market participants with the ability to hedge and express their views on these commodity index options at a listed venue with all of the capital efficiencies available, such as initial margin and margin offsets against the underlying futures contracts listed at CME Group. 

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The listing cycle for the options on BCOM futures will match the BCOM futures. It will be four of the nearest quarterly months and one additional December contract. 

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European-style options can be exercised only on the option’s expiration day. This reduces some of the uncertainty for option sellers, as they cannot be assigned prior to expiration (American-style options can be exercised and assigned at any time up to expiration).

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At a high level, CME Group is attempting to ease the messaging burden on our liquidity providers while providing clients with the necessary strikes and hedging tools needed to adequately trade in this market. Below is a breakdown of the strike listing rules at launch: 

When listed, strikes listed for 25% above and 25% below the at-the-money strike at 2 index point increment.  

When less than 90 days remaining until expiration (DTE), strikes listed for 15% above and 15% below the at-the-money strike at 1 index point increment.  

When less than 60 days remaining until expiration (DTE), strikes listed for 10% above and 10% below the at-the-money strike at 0.5 index point increment. When less than 30 days remaining until expiration (DTE), strikes listed for 5% above and 5% below the at-the-money strike at 0.25 index point increment.

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The position limits for these options contracts are determined in conjunction with the positions in the underlying futures. View more information on position limits.

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Options on Bloomberg Commodity Index futures are listed on the CBOT DCM and follow the CBOT Fee Schedule under the Equity Bloomberg tab. View the fee schedule.

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See a list of firms who have indicated they are willing and able to provide pricing for Commodity Index products.

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