CME Group Inc., the world’s largest and most diverse derivatives exchange, today announced the launch of clearing services for its PJM Western Hub 50 MW peak calendar month real-time LMP swap futures contract, which has been available for trading on the CME Globex electronic trading platform since May 18. 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, beginning on June 14 for trade date June 15. These contracts are listed for trading by NYMEX through CME Globex, and are subject to NYMEX rules and regulations.
The commodity code for the new contract will be 4S. It will allow the majority of the PJM marketplace to hedge their risk in larger, standardized contract sizes.