CME Group announced the launch of a broad suite of new natural gas and power markets.
These new contracts will be listed as futures on CME Globex, the New York Mercantile Exchange (NYMEX) trading floor and CME ClearPort, and will be available for trading on CME Direct, a sophisticated platform offering side-by-side trading and straight-through processing and clearing of exchange-listed and over-the-counter (OTC) energy markets. This follows the May introduction of CME Direct, which offered industry participants access to CME Group’s suite of global benchmark energy products, including Henry Hub Natural Gas.
“The addition of these contracts vastly expands the breadth of listed products offered on CME Direct and offers our customers in the natural gas and power markets new trading strategies that better meet their needs,” said Gary Morsches, Managing Director, Global Energy at CME Group. “This offers a fuller, more robust trading and clearing solution for our customers as they manage risk in the energy markets.”
The new natural gas and power product suite includes 164 natural gas contracts available at 52 trading hubs and 48 power contracts for the four most liquid North American ISOs. It also offers market participants several new trading strategies including calendar strip and strip spread pricing, intra-month calendar strip trade pricing, cross basis swaps, and ISO and DART spreads for the power markets. All of these contracts are listed by and subject to the rules of the NYMEX.
“With unparalleled access to CME Group’s listed and aggregated OTC markets, CME Direct provides a highly automated, sophisticated new way for the natural gas and power industry to execute their trading strategies,” said Michel Everaert, Managing Director, OTC Solutions. “CME Direct’s global distribution and real-time access allows market participants who have never used our services to access our markets and benefit from our risk management products.”
Recommended Reading
Private Equity: Seeking ‘Scottie Pippen’ Plays, If Not Another Michael Jordan
2024-01-25 - The Permian’s Tier 1 acreage opportunities for startup E&Ps are dwindling. Investors are beginning to look elsewhere.
Some Payne, But Mostly Gain for H&P in Q4 2023
2024-01-31 - Helmerich & Payne’s revenue grew internationally and in North America but declined in the Gulf of Mexico compared to the previous quarter.
In Shooting for the Stars, Kosmos’ Production Soars
2024-02-28 - Kosmos Energy’s fourth quarter continued the operational success seen in its third quarter earnings 2023 report.
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.
Uinta Basin: 50% More Oil for Twice the Proppant
2024-03-06 - The higher-intensity completions are costing an average of 35% fewer dollars spent per barrel of oil equivalent of output, Crescent Energy told investors and analysts on March 5.