CME Group Announces First Trade of New European Renewable Fuel Contract

Rhea-AI Summary

CME Group has successfully launched and traded the first Used Cooking Oil Methyl Ester (UCOME) futures contracts, with ten contracts executed on September 16, 2020. Open interest reached 65 contracts by September 22, 2020. This initiative responds to the growing market for waste-based products as clean energy sources. Peter Keavey, Global Head of Energy, emphasized the importance of these contracts for managing price risks. Additionally, the UCOME contracts expand CME Group's energy offerings, enhancing tools for market participants to navigate the evolving energy landscape.

Positive

• Launch of UCOME futures contracts indicates growth in clean energy market.
• First trade of UCOME futures highlights successful market entry.
• Open interest of 65 contracts suggests initial market engagement.

Negative

• None.

CHICAGO and LONDON, Sept. 23, 2020 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced the first trade of the Used Cooking Oil Methyl Ester (UCOME) futures contracts. Ten contracts were traded on September 16, 2020. Open interest is at 65 contracts as of September 22, 2020.

"As waste-based products are increasingly in demand as a source of clean energy, our new used cooking oil contracts help clients manage the price risks associated with this emerging market," said Peter Keavey, Global Head of Energy at CME Group. "This new product is another example of CME Group's commitment to developing markets that reflect the evolving energy market and can help meet changing customer preferences."

Tullett Prebon Energy & Commodities, part of TP ICAP, a leading provider of market infrastructure, became the first broker to transact Europe's first UCOME derivatives contracts between two counterparties.

CME Group launched four Renewable Fuel Futures contracts on August 17, 2020, based on demand from customers for new tools to help manage exposure to the growing waste oils sector. The UCOME contracts are financially settled to the Argus Media UCOME FOB ARA assessment.

Adrian Binks, Chairman and Chief Executive of Argus Media added, "We are delighted that the first UCOME versus gasoil spread trade has been completed today. These hedging tools will help companies manage risk in this increasingly important and rapidly expanding market."

The new Used Cooking Oil (UCO) and Used Cooking Oil Methyl Ester (UCOME) futures contracts expand CME Group's already robust suite of energy futures and options. UCO and UCOME are listed with and subject to the rules of NYMEX. For more information, please visit here. 

About CME Group

As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing.  With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively.  Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc.  All other trademarks are the property of their respective owners.

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SOURCE CME Group

FAQ

What are the UCOME futures contracts launched by CME?

UCOME futures are contracts based on Used Cooking Oil Methyl Ester, designed to manage price risks associated with this emerging market.

When was the first trade of UCOME futures executed?

The first trade of UCOME futures was executed on September 16, 2020.

What was the open interest for UCOME futures as of September 22, 2020?

The open interest for UCOME futures was 65 contracts as of September 22, 2020.

What is the significance of CME Group's UCOME contracts?

CME Group's UCOME contracts provide essential tools for companies to manage exposure to waste oils, reflecting the growing demand for renewable energy sources.

Who brokered the first UCOME derivatives contracts?

Tullett Prebon Energy & Commodities was the first broker to transact the UCOME derivatives contracts.