CME Group Inc., the world’s largest and most diverse derivatives exchange, today announced new national balancing point Henry Hub swap futures and options contracts, scheduled to begin trading on May 10 for trade date May 11. These contracts are listed with, and subject to, the rules and regulations of NYMEX. The contracts will be available through CME ClearPort®, a set of flexible clearing services open to OTC market participants to substantially mitigate counterparty risk and provide capital efficiencies across asset classes. The options contract will also be offered for trading on the New York trading floor.
The NBP is a notional trading location on the National Grid, the natural gas pipeline infrastructure operator of the United Kingdom, and is the most liquid natural gas trading location in Europe. The contracts will appeal to commercial participants involved in the international waterborne LNG market, as well as international LNG traders, global energy companies, national energy companies, utilities, and electricity generators.
The commodity code will be E2 for the futures contract and V1 for the options contract. The first listed month will be June 2009. Monthly contracts will be listed for 16 consecutive months through September 2010, with the expectation of listing an additional three consecutive months at the end of each quarter.