- 17 May 2021
- By CME Group
- Topics: Energy
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 will be 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 will be 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?
Starting trade date July 12, 2021, Micro WTI Crude Oil futures will be available for trading on CME Globex and for submission of clearing via CME ClearPort, pending regulatory review.
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.
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 | |
There will be 12 serial contract months listed for Micro WTI Crude Oil futures at any given time. The first listed month will be August 2021.
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.
Yes, pending all relevant CFTC regulatory review periods, Micro WTI Crude Oil futures will be eligible for block trading. The minimum block threshold will be 500 contracts.
No, Micro WTI Crude Oil futures will not be eligible for TAS trading.
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.
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.
Micro WTI Crude Oil futures will be part of the NYMEX Fee Schedule.
Micro WTI Crude Oil futures will use a FIFO (First in, first out) algorithm, identical to their standard counterparts.
Micro WTI Crude Oil futures will have dynamic price fluctuation limits (circuit breakers) just like their standard-sized counterparts. Daily price limits for these products can be found here.
Options on Micro WTI Crude Oil futures will not be listed at the launch of the futures contract.
About CME Group
As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. Comprised of four exchanges - CME, CBOT, NYMEX and COMEX - we offer the widest range of global benchmark products across all major asset classes, helping businesses everywhere mitigate the myriad of risks they face in today's uncertain global economy.
Follow us for global economic and financial news.
© 2021 CME Group Inc. All rights reserved.