CME Group Inc. Creates Micro WTI Futures


CME Group Inc.  announced expand its portfolio of micro-sized futures contracts of WTI.

 

May 17, 2021, | AtoZ Markets – CME Group Inc. a company dedicated at derivatives markets (NASDAQ: CME) announced today that it will expand its portfolio of micro-sized futures contracts of WTI.

These contracts are expected to be inaugurated on July 12, and the regulatory review of them is still pending.

Micro WTI futures will be one-tenth the size of the company’s global benchmark WTI Crude Oil futures contract and cash-settled.

Also, they will enable market participants – from institutions to sophisticated, active, individual traders – to fine-tune exposure to crude oil markets and enhance their trading strategies in an efficient, cost-effective way.

This new option allows investors to add more granularity to their energy trading and risk-management strategies.

The use of Micro WTI Crude Oil futures permit fine-tune your crude oil market exposure up or down in 100-barrel increments (the size of one contract ).

 

Benefits of This New Product

“As U.S. crude continues to gain global significance, we are seeing increasing demand for tools that help a broader range of clients access these markets,” said Peter Keavey, Global Head of Energy Products at CME Group.

Peter Keavy has also said that:

“WTI futures have always been a top product for active traders around the world, and the smaller size of Micro WTI futures will offer more flexibility and greater precision to market users – all while enabling them to benefit from the transparency and liquidity of the world’s most robust crude oil contract.”

The company has clarified that there will be 12 serial contract months listed for Micro WTI Crude Oil Futures at any given time, and the first listed month will be August 2021.

Also the company said is pending all relevant CFTC regulatory review periods, but Micro WTI Crude Oil futures will be eligible for block trading, and the minimum block threshold will be 500 contracts.

 

Read here the full announcement of CME Group Inc. 

 

What Are the Margin Requirements for Micro WTI Crude Oil Futures?

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