Q3 2021 Energy News and Market Insights

  • 13 Jul 2021
  • By CME Group


  • WTI futures month to date (MTD) average daily volume (ADV) is 986K in June, up 13% YoY from June 2020
  • WTI futures MTD average daily open interest is 2.46M in June, which is the highest level since June 2018
  • Henry Hub MTD average daily open interest is 1.29M in June, which is the highest levels since July 2020

Nature-Based Global Emissions Offset futures (N-GEO)

The Nature-Based Global Emissions Offset futures (N-GEO) contract is a physically settled contract that allows for delivery of Agriculture, Forestry, and Other Land Use (AFOLU) voluntary offset credits that meet the Verra Registry’s Climate Community and Biodiversity (CCB) Standard.

The N-GEO contract goes beyond simply reducing emissions as it supports local communities and biodiversity conservation by requiring delivered offset credits to include Verra Registry’s Climate, Community, and Biodiversity (CCB) Standard.   

This product complements the recently launched GEO futures contract and provides an additional tool for customers looking to meet carbon reduction goals and mitigate exposure to climate risk.

Launch of Financial TTF futures and options

Customers accessing CME Group’s global benchmark, Henry Hub (NG), are increasingly trading our TTF futures (TTF) and option (TFO) contracts, which are listed alongside NG on one single venue for customer efficiency and risk management optimization.

As this market has developed, we have decided to launch four new financially settled products to further expand our risk management offering.

The expansion of the global gas product suite means that customers can hedge all their natural gas risk on NYMEX. Access TTF futures on Trayport, CME Direct, and TT.

Source: CME Group

Announcing reduced strike increments for Weekly Crude Oil options

On June 28, CME Group officially reduced strike increments for WTI (CL) and Brent Weekly options from $0.50 to $0.25.

This reduction provides a more precise mechanism for managing short-term exposure to crude oil.

Additionally, weekly options offer a low-cost tool to mitigate risk associated with physical or financial positions in crude oil.

Our article, Hedging with WTI Crude Oil Weekly Options, provides a range of use cases and strategies for weekly WTI options for storage, upstream, and downstream risk management.

Source: CME Group

SPAN 2 Margin Framework Now Live for Testing

In conjunction with CME Group’s roll out of the SPAN 2 framework for energy markets, the CME CORE user interface and API are now live to test SPAN 2 functionality.

As CME Group gets closer to going live with SPAN 2, risk data will be refreshed more frequently and a subsequent advisory will notify users once risk parameters are refreshed daily. 

CME CORE is the primary application for all business users and risk managers to analyze SPAN 2 margin requirements. 
Read more here

All data is at June 30, 2021 unless stated otherwise

NOW LIVE: Introducing Micro WTI futures

At 1/10 the size of the benchmark WTI (CL) futures contract, Micro WTI (MCL) Crude Oil futures provide a smaller, more precise instrument for managing crude oil exposure

Add more granularity to your energy trading strategies by using micro futures to fine-tune your crude oil market exposure up or down in 100-barrel increments.

The micro contract offers the same robust transparency and price discovery of larger WTI futures with smaller margin requirements.

Learn more about how Micro WTI (MCL) Crude Oil futures can be utilized to more precisely manage delta on crude oil options.

Learn more about Micro WTI

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