CME Group Introduces New Brent Crude Futures Crack Spreads

Strategic Insights -

CME Group, the world's leading energy marketplace, announced the introduction of two new Brent crude futures crack spreads, set to be listed with implied functionality on CME Globex for trade date on March 28, 2011. These new crack spreads will enable market participants to hedge benchmark RBOB Gasoline futures and Heating Oil futures against NYMEX Brent Crude Oil Last Day Financial Futures. According to Joe Raia, CME Group Managing Director, Energy & Metals Products, the listing of these new Brent crude crack spreads builds on the company's commitment to meeting customer needs by extending its slate of intercommodity crude oil spreads.

Key Takeaways:

  • The new Brent crude futures crack spreads will enable market participants to hedge benchmark RBOB Gasoline futures (RB) and Heating Oil futures (HO) against NYMEX Brent Crude Oil Last Day Financial Futures (BZ).
  • The new crack spreads will be available for electronic trading only on CME Globex (RB:BZ and HO:BZ).
  • The introduction of these new crack spreads reflects CME Group's commitment to meeting the needs of customers and extending its slate of intercommodity crude oil spreads.
  • Volumes in energy futures are rising at a rapid pace, with the average daily volume (ADV) for WTI futures growing 37 percent year-over-year to nearly 1.2 million contracts in February.
  • Similarly, Heating Oil futures increased 33 percent to 142,000 contracts, RBOB Gasoline futures increased 14 percent to 126,000 contracts, and Brent Last Day Financial futures increased significantly to 3,197 contracts.
  • CME Group offers a wide range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather, and real estate.

Statistics:

  • The ADV for WTI futures grew 37 percent year-over-year to nearly 1.2 million contracts in February.
  • Heating Oil futures increased 33 percent to 142,000 contracts in February.
  • RBOB Gasoline futures increased 14 percent to 126,000 contracts in February.
  • Brent Last Day Financial futures increased significantly to 3,197 contracts in February.
  • The new Brent crude futures crack spreads will be listed on CME Globex.

Sources:

  • CME Group News Release, "CME Group Introduces New Brent Crude Futures Crack Spreads", March 28, 2011
  • Energy Weekly News, "CME Group Announces New Brent Crude Futures Crack Spreads", March 28, 2011