In this report
- New expirations to hedge event-based oil risk
- More traders are hedging U.S. Gulf Coast price risk
- Fueling changes: EU green policies impact gasoline hedges
- Henry Hub Monthly and Weekly options ignite on-screen liquidity
- Energy options traders prefer CME Direct
- EUA futures and options launch to bolster green initiatives
- Six new cities launched for Weather futures
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New expirations to hedge event-based oil risk
Starting July 31*, Monday and Wednesday Weekly options on WTI Crude Oil futures will be available alongside popular Friday expirations and benchmark monthly options.
WTI Weekly options can be used to precisely hedge weekend headline risk, OPEC+ meetings, or unexpected weather events. They can also be used to express views on mid-week announcements, including the weekly EIA Petroleum Status Report.
Weekly WTI Crude Oil options are the fastest growing energy product at CME Group, reaching a single-day volume record of more than 21K contracts on July 7. WTI is the only crude oil benchmark with robust, around-the-clock liquidity in Friday Weekly options.
More traders are hedging U.S. Gulf Coast price risk
Open interest in CME Group WTI Midland and WTI Houston reached record levels this June at 461K contracts, as the market responds to the inclusion of WTI Midland in the Dated Brent Index.
Fueling changes: EU green policies impact gasoline hedges
Environmental mandates are leading to a push for 10% ethanol in European gasoline. This change will bring Europe further in line with the U.S., increasing the role RBOB Gasoline futures can play as an international benchmark.
Henry Hub Monthly and Weekly options ignite on-screen liquidity
Henry Hub options volume continues to grow year-over-year with open interest at 3.5M contracts, up 30% from 2022. Henry Hub options have 24-hour streaming screen markets with consistent liquidity through summer 2024, including Friday Weekly options for more precise hedging.
Want to test your options strategy? Assess your strategy in a risk-free environment with the complimentary Strategy Simulator from QuikStrike. This tool allows traders to compare how an option would perform across different underlying price scenarios.
Energy options traders prefer CME Direct
CME Direct, the leading trading platform for Energy options volume, offers 24-hour streaming liquidity for Crude Oil and Natural Gas monthly and weekly options.
Execute covered, multi-leg strategies with a consolidated view of all trades, RFQs, crosses, and blocks. Plus, see all listed options for a futures contract.
Explore the robust features that empower traders to optimize their strategies efficiently.
EUA futures and options launch to bolster green initiatives
European Union Allowance (EUA) futures and options provide delivery of physical allowance credits in accordance with the European Union Emissions Trading System (EU-ETS). The EU-ETS is a cap-and-trade system based on a Directive of the European Parliament, operating in all European Union countries, as well as Iceland, Liechtenstein, and Norway.
EUA futures and options can serve as a price discovery and risk management tool to help meet regulatory greenhouse gas emissions reduction targets.
Six new cities launched for Weather futures
This May, Boston, Burbank, Houston, Philadelphia, Essen, and Paris were added to the Weather futures suite, which already encompasses nine cities across the U.S. and three international locations.
As the impacts and risks associated with adverse weather and climate change continue to grow, so has the demand for financial products offering protection to these scenarios.
Our Weather futures and options complex has achieved a record open interest of 200K contracts, while experiencing a 235% increase in average daily volume compared to 2022.
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