CME Group, the world's largest and most diverse derivatives exchange, today announced the launch of clearing services for eight new petroleum swap futures contracts, scheduled to launch on May 31 for trade date June 1.
Clearing services will be available through CME ClearPort, a set of flexible clearing services open to over the counter (OTC) market participants to substantially mitigate counterparty risk and provide capital efficiencies across asset classes. These contracts are listed for trading by NYMEX through CME ClearPort, and are subject to NYMEX rules and regulations.
The swap futures contracts and their commodity codes will be: New York jet fuel (Platts) (1Q); New York jet fuel (Platts) vs. heating oil (1U); propane non-LDH Mont Belvieu (OPIS) (1R); propane non-LDH Mont Belvieu (OPIS) BALMO (1S); jet aviation fuel (Platts) cargoes FOB Med (1T); jet aviation fuel (Platts) cargoes FOB Med vs. ICE gasoil (1V); 1% fuel oil (Platts) cargoes CIF Med (1W); and 1% fuel oil (Platts) cargoes CIF NWE (1X).
The contracts will appeal to both the domestic and European airline industry for hedging and to the domestic natural gas liquids marketplace.
The first listed month will be June 2009. All of the contracts will be listed for 36 consecutive months, with the exception of the propane non-LDH Mont Belvieu (OPIS) BALMO swap futures, which will be listed for up to two consecutive months, and the propane non-LDH Mont Belvieu (OPIS) Swap Futures, which will be listed for up to 48 consecutive months.