CME Group, the derivatives marketplace, announced that it will launch Micro Henry Hub futures and options on November 6, “pending all relevant regulatory reviews.”
These new micro contracts will “be one-tenth the size of the company’s benchmark Henry Hub futures and options and cash-settled.”
Peter Keavey, Global Head of Energy and Environmental Products, CME Group, said:
“Our new Micro Henry Hub futures and options contracts will provide global energy traders with additional flexibility to manage their natural gas exposure with precision. The launch of these smaller contracts is particularly well timed as Henry Hub’s significance as a global benchmark continues to grow. We look forward to helping a wider range of global investors access the liquidity and efficiency of our energy markets.”
Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers, said:
“CME Group’s smaller sized Micro Henry Hub futures and options will give our clients a more flexible and cost-effective way to trade benchmark energy futures with precision. We are pleased to offer these products alongside other micro futures and options contracts, which continue to be a popular way for our active trader clients to manage their exposure with less upfront commitment.”
Average daily volume in the full-sized Henry Hub futures contract “is up 14% from last year.”
Volume originating outside of the U.S. has also “grown 3% this year to 21% of total volume. Average open interest is also up 16% from last year.”
CME Group claims that it continues “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 and 55% of volume occurring on screen this year, up 10% from last year. Average open interest is up 12% from last year.”
Micro Henry Hub futures and options will be “listed by and subject to the rules of NYMEX. For more information.”
As the derivatives marketplace, CME Group “enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities.”
CME Group exchanges claim to “offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals.”
The company offers futures and options “on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.”
In addition, it operates “one of the world’s leading central counterparty clearing providers, CME Clearing.”