- When will the BCOM Index futures/swaps product be changed?
- Are there any changes to other commodity index futures?
- How are fees changing?
- Is the daily settlement mechanism changing?
- Is the minimum price increment for the BCOM futures (Commodity Code: AW) changing?
- Are there any changes being made to the BCOM Index swaps (Commodity Code: DGS)?
- What are the codes for these products?
- Where can I find more information about Commodity Index products at CME Group?
1. When will the BCOM Index futures/swaps product be changed
Product specification changes will go into effect December 6, 2021, pending all regulatory approval.
Fee changes will go into effective December 1, 2021, pending all regulatory approval.
2. Are there any changes to other commodity index futures?
No, Bloomberg Commodity Index futures (AW) and swaps (DGS) are the only products in scope for amendments in December 2021.
3. How are fees changing?
The CBOT Fee Schedule will be amended on December 1 to reflect new fees for BCOM futures and swaps. The exchange will be removing the legacy embedded fee associated with BCOM futures and moving to a flat fee model similar to other futures contracts traded at CME Group. To confirm, the daily embedded fee previously charged by CME Group will no longer apply effective December 1.
The new BCOM futures fees will be $0.20 Globex / $0.25 Block for Members & $1.00 Globex / $1.25 Block for non-members.
For a complete breakdown of the fee structure, please see the CBOT Fee Schedule.
4. Is the daily settlement mechanism changing?
Yes, the daily settlement procedures are changing for the BCOM futures (Commodity Code: AW). Prior to December 6, a VWAP of Globex activity between 1:29 p.m. CT – 1:30 p.m. CT was used to determine daily settle.
Beginning on December 6 (pending all regulatory approval):
Bloomberg calculates and publishes official closing values for the BCOM based on the settlements of the index’s component commodity futures contracts. BCOM futures (AW) and swaps (DGS) settle to the Bloomberg Commodity Index official closing value on a daily basis.
If Bloomberg does not provide a BCOM Index official closing value by 4:00 p.m. Central Time (CT), then the swaps will settle to the most recent index value available.
5. Is the minimum price increment for the BCOM futures (Commodity Code: AW) changing?
Yes, the minimum price increment for BCOM futures (AW) will be cut from 0.10 ($10.00) to 0.01 ($1.00) effective December 6, 2021.
| Index Future Contract | Outright (NEW) | Multiplier | Example Price | Example Contract Value |
|---|---|---|---|---|
| BCOM Index futures | 0.01 Index points=$10 | $100 | 102.30 | $10,230 |
*Note that the new minimum price fluctuation (tick size) will be reflected on the website by Friday, December 3.
6. Are there any changes being made to the BCOM Index swaps (Commodity Code: DGS)?
The only changes to the BCOM Index swaps are clarification of the text of the rule on the daily settlement language. The futures and swaps will now settle to the same value.
7. What are the codes for these products?
| Index Future Contract | Underlying Index (Bloomberg) | Commodity Code | BTIC Code | Bloomberg Front Month |
|---|---|---|---|---|
| BCOM Index futures | BCOM | AW | AWT | DNA |
| BCOM Index swaps | BCOM | DGS (No Globex) | DGT | DGSA |
8. Where can I find more information about Commodity Index products at CME Group?
Visit cmegroup.com/commodityindex for the latest information. You can fill out the form on this page to stay informed of commodity index product updates.
For more information on changes, please visit SER8878R.
[h5] Optional Topic
Commodity Index products
Learn more about CME Commodity Index products, including contract specs, different ways to trade, and more.
