Table of Contents
- When will the Micro WTI Crude Oil futures product be listed for trading?
- Why is CME Group choosing to launch this product?
- What are the contract specifications, and how is it different from the currently listed standard-sized WTI futures?
- How many contracts are listed at a given time?
- What are the trading hours on CME Globex and submission hours on ClearPort?
- Are these futures contracts eligible for block trading?
- Are these futures contracts eligible for TAS trading?
- What are the margin requirements for Micro WTI Crude Oil futures?
- Will margin credits be available for offsetting positions between the Micro WTI Crude Oil futures and their standard-sized counterparts?
- What are the fees for the Micro WTI Crude Oil futures contract?
- What trade matching algorithm is used for the Micro WTI Crude Oil futures on CME Globex?
- Are there circuit breakers on Micro WTI Crude Oil futures?
- Will there be options on Micro WTI Crude Oil futures?
1. When will the Micro WTI Crude Oil futures product be listed for trading?
Starting trade date July 12, 2021, Micro WTI Crude Oil futures are available for trading on CME Globex and for submission of clearing via CME ClearPort.
2. Why is CME Group choosing to launch this product?
The introduction of Micro WTI Crude Oil futures responds directly to customer demand for a smaller, more precise instrument for managing crude oil price exposure. At one-tenth the size of the benchmark WTI contract, the Micro WTI futures product offers more granularity and smaller margin requirements with the same robust transparency and price discovery of the larger WTI futures contract.
3. What are the contract specifications, and how is it different from the currently listed standard-sized WTI futures?
Compare the contract to the standard-sized contract below:
Product specifications |
Micro WTI Crude Oil futures |
|
|---|---|---|
Product code |
MCL |
CL |
Contract size |
100 barrels |
1,000 barrels |
Ratio to the standard |
1/10 |
Standard |
Minimum tick increment |
$0.01 per barrel |
$0.01 per barrel |
Dollar value of a tick increment |
$1 per contract |
$10 per contract |
Product code |
MCL |
CL |
Settlement type |
Financial |
Physical |
Expiration Schedule |
1 day prior to the expiration of WTI Crude Oil futures |
Standard |
Listing exchange |
NYMEX | |
4. How many contracts are listed at a given time?
There are 12 serial contract months listed for Micro WTI Crude Oil futures at any given time. The first listed month is August 2021.
5. What are the trading hours on CME Globex and submission hours on ClearPort?
Sunday – Friday 6:00 p.m. – 5:00 p.m. ET with a trading halt from 5:00 p.m. ET – 6:00 p.m. ET. Please refer to this link.
6. Are these futures contracts eligible for block trading?
Yes, Micro WTI Crude Oil futures are eligible for block trading. The minimum block threshold is 500 contracts.
7. Are these futures contracts eligible for TAS trading?
No, Micro WTI Crude Oil futures are not eligible for TAS trading.
8. What are the margin requirements for Micro WTI Crude Oil futures?
Product code |
Contract size |
Initial margin |
Maintenance margin |
|
|---|---|---|---|---|
CL |
1,000 barrels |
$5,830 |
$5,300 |
|
Micro WTI Crude Oil futures |
MCL |
100 barrels |
$583 |
$530 |
*Accurate as of May 10, 2021.
9. Will margin credits be available for offsetting positions between the Micro WTI Crude Oil futures and their standard-sized counterparts?
Information on margin credits will be made available closer to the launch date. Margins credits are indicative of their standard-sized counterparts; any estimates are based on current market conditions and are subject to change.
Learn more about Margins FAQs.
10. What are the fees for the Micro WTI Crude Oil futures contract?
Micro WTI Crude Oil futures are part of the NYMEX Fee Schedule.
11. What trade matching algorithm is used for the Micro WTI Crude Oil futures on CME Globex?
Micro WTI Crude Oil futures uses a FIFO (First in, first out) algorithm, identical to their standard counterparts.
12. Are there circuit breakers on Micro WTI Crude Oil futures?
Micro WTI Crude Oil futures have dynamic price fluctuation limits (circuit breakers) just like their standard-sized counterparts. Daily price limits for these products can be found here.
13. Will there be options on Micro WTI Crude Oil futures?
Options on Micro WTI Crude Oil futures will not be listed at the launch of the futures contract.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
