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Liquidity in E-mini S&P 500 ESG futures remains strong
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E-mini S&P 500 ESG futures trading activity remains strong, with Q1 2023 ADV at 1.3K contracts and open interest averaging 12.2K contracts. Non-U.S. trading hours has increased to 10% of trading volume in 2023, up from 7% in 2022.
E-mini S&P Europe 350 ESG futures enable market participants to capture benchmark European equity exposure while integrating ESG exposure into your investments. The futures are cash settled to the S&P Europe 350 ESG Index, a Pan-European index covering developed markets across over 15 countries. The index is considered compliant with Article 8 of the SFDR and uses the same methodology as the S&P 500 ESG Index. Since launch, 3.87K contracts have traded.
Molybdenum Oxide added to the Battery Metals lineup
Molybdenum Oxide (Platts) futures allow you to forward hedge molybdenum price risk using a centrally cleared, cash-settled financial instrument.
Since launching on March 13, Molybdenum Oxide (Platts) futures have traded 272 contracts (or 163 tons), with 165 contracts of open interest.
Cobalt and Lithium futures are on the rise
The rapid growth of electric vehicles and large-scale battery storage applications is expected to drive increasing demand for cobalt and lithium – and with it, greater price risk. Cobalt and Lithium futures offer price transparency, efficient risk management, and are financially settled based on the monthly average of the assessments published by Fastmarkets, a leading commodities benchmark data provider.
Market participants are taking notice as Q1 2023 was a record for Cobalt futures with 167 contracts trading per day and open interest now at 18.6K contracts (or 18.6K tons). Lithium open interest has reached over 1K contracts and extends out until June 2024.
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.