.jpg)
CME Group, the world's largest and most diverse derivatives exchange, today announced the launch of trading and clearing services for 11 new financially settled natural gas basis options contracts. Trading will be available on the New York trading floor and clearing services will be available through CME ClearPort(®), a set of flexible clearing services open to over the counter (OTC) market participants to significantly mitigate counterparty risk and provide capital efficiencies across asset classes, beginning on August 2 for trade date August 3. These contracts are listed by NYMEX, and are subject to NYMEX rules and regulations.
The new basis options contracts and their commodity codes will be:
- Henry Hub (5E)
- Houston Ship Channel (5F)
- SoCal (5M)
- Northwest Pipeline, Rockies (5I)
- Panhandle (5K)
- Michigan Consolidated Gas (4W)
- Texas Eastern Zone M-3 (5N)
- Columbia Gas Transmission Corp. Appalachia (TCO) (5D)
- Natural Gas Pipeline Co. of America (NGLP) TexOk (5H)
- Natural Gas Pipeline Co. of America (NGLP) Mid-Con (5G)
- Waha (5O)
These options will help natural gas producers and consumers to more effectively hedge their exposure to natural gas price fluctuations at regional delivery points outside of the Henry Hub.
The contract will be 2,500 mmBtus in size with a minimum price fluctuation of $0.01 per barrel. There will be 10 strike prices in increments of $0.01 per mmBtu above and below the "at-the-money" strike price, for a total of 21 strike prices. The expiration date will be the last business day of the underlying month of the futures contract.
The first listed month will be the August 2009 contract. The contracts will be listed for 48 consecutive months.
For more information please visit www.cmegroup.com/clearport.
