CME Group, the leading derivatives marketplace, has announced that it will be launching Micro Henry Hub futures and options on November 6, pending regulatory reviews. These new contracts will be one-tenth the size of the company’s benchmark Henry Hub futures and options, and will be cash-settled.
According to Peter Keavey, Global Head of Energy and Environmental Products at CME Group, the Micro Henry Hub contracts will provide global energy traders with more flexibility to manage their natural gas exposure accurately. He also highlighted the timing of the launch, stating that Henry Hub’s significance as a global benchmark is continuing to grow.
Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers, praised the smaller-sized contracts for offering their clients a more flexible and cost-effective way to trade benchmark energy futures with precision. He expressed his pleasure in offering these products alongside other micro futures and options contracts, which have proven popular among their active trader clients.
The full-sized Henry Hub futures contract has seen a 14% increase in average daily volume compared to last year. Additionally, volume originating from outside the US has grown by 3% this year, accounting for 21% of total volume. Average open interest has also seen a 16% increase from last year.
CME Group claims to be the most liquid and efficient marketplace for trading natural gas options, with average daily volume in Henry Hub options up 29% from last year. They also note that 55% of volume has occurred on screen this year, a 10% increase compared to last year. Average open interest has risen by 12% from last year.
Micro Henry Hub futures and options will be listed by and subject to the rules of NYMEX. For more information, interested parties can visit the NYMEX website.
CME Group facilitates trading of futures, options, cash, and OTC markets, enabling market participants worldwide to manage risk and take advantage of opportunities. They offer a wide range of global benchmark products across major asset classes including interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals. The company provides futures and options trading through the CME Globex platform, fixed income trading via BrokerTec, and foreign exchange trading on the EBS platform. Additionally, CME Group operates as one of the world’s leading central counterparty clearing providers through CME Clearing.
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