CME Group, the world’s largest and most diverse derivatives exchange, today announced the launch of clearing services for six new physically delivered natural gas liquids futures contracts. 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 July 19 for trade date July 20. These contracts are listed for trading by NYMEX through CME ClearPort and are subject to NYMEX rules and regulations.
The new futures contracts and their commodity codes include: Mont Belvieu physical LDH propane (OPIS) (3N) with delivery at the LDH facility in Mont Belvieu, Texas; Mont Belvieu physical non-LDH propane (OPIS) (3P); Mont Belvieu physical normal butane (OPIS) (3M); Mont Belvieu physical natural gasoline (OPIS) (3R); Mont Belvieu physical iso-butane (OPIS) (3L); and Mont Belvieu physical ethane (OPIS) (3Q). The Non-LDH propane contract as well as the other four physical NGL contracts will be delivered at the Enterprise facility in Mont Belvieu, Texas.
Clearing services for these NGL contracts are designed to help domestic producers, end-users, and retailers meet their hedging needs.
The first listed month for these contracts will be August 2009. The physical LDH propane and non-LDH propane futures contracts will be listed for 48 consecutive months. The other contracts will be listed for 36 consecutive months.