Henry Hub Futures Reach Record Open Interest as International Demand Soars

Rhea-AI Summary

CME Group announced record-breaking performance in its Henry Hub futures contracts, reaching 1.73 million contracts in open interest on October 30, 2024. International participation hit all-time highs with 25% of total trading originating outside the U.S. Average daily volume increased 26% year-to-date to 500,000 contracts, with EMEA up 57% and APAC up 15%. Henry Hub options also showed strong growth, with average daily volume up 62% to 235,000 contracts, reaching the highest levels since 2013. On-screen trading volume outside the U.S. surged 120%.

Positive

• Record open interest of 1.73 million contracts in Henry Hub futures
• 25% of total trading now originates from international markets
• 26% YTD increase in average daily volume to 500,000 contracts
• 57% growth in EMEA trading volume
• 62% increase in Henry Hub options average daily volume

Negative

• None.

Insights

Market Research Analyst

The record-breaking open interest in Henry Hub futures signals a significant transformation in global natural gas markets. With 1.73 million contracts and 25% of trading now originating outside the U.S., this demonstrates CME Group's strengthening position in international energy markets. The substantial growth in average daily volume (ADV), up 26% year-to-date to 500,000 contracts, reflects increased market participation and liquidity.

The surge in EMEA trading volume (57% increase) and APAC activity (15% increase) indicates growing global reliance on U.S. natural gas pricing. Options trading has shown remarkable growth with a 62% increase in ADV, suggesting heightened demand for risk management tools in volatile energy markets. This expanded global footprint strengthens CME's competitive position and revenue potential in the derivatives marketplace.

Energy Market Specialist

The surge in Henry Hub futures activity reflects fundamental shifts in global gas markets driven by geopolitical tensions and Europe's pivot away from Russian gas. The record open interest demonstrates market participants' increasing need to hedge exposure to U.S. natural gas prices, which have become the de facto global benchmark. The dramatic rise in options trading, particularly from international participants, suggests growing sophistication in risk management strategies amid volatile energy prices.

The 120% increase in international on-screen options volume is particularly noteworthy, indicating a structural shift in how global energy traders manage their portfolios. This trend is likely to persist as U.S. LNG export capacity continues to expand, further cementing Henry Hub's role as the key price reference for global gas markets.

CHICAGO, Oct. 31, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that open interest in its global benchmark Henry Hub futures contract reached a record 1.73 million contracts on October 30, 2024 as international participation is at all-time highs.

"As the U.S. exports record levels of LNG to supply Europe and Asia, Henry Hub remains the most important price reference in global gas markets," said Peter Keavey, Global Head of Energy and Environmental Products at CME Group. "Henry Hub is the largest and most liquid global gas benchmark, with a record 25% of total trading originating outside of the U.S. this year." 

In addition to record open interest, volume in Henry Hub futures has also grown this year. Year-to-date, average daily volume (ADV) is at 500,000, up 26% from last year. Henry Hub futures ADV in EMEA year-to-date is at 111,000, up 57% from last year, while ADV in APAC is at 12,800, up 15%.

CME Group is also the most liquid and effective marketplace for trading Henry Hub options on screen today. Total Henry Hub options ADV year-to-date is currently at a record of 235,000 contracts, up 62% from last year, with average daily open interest at the highest levels since 2013. On-screen volume in and outside of the U.S. has also reached record levels, with ADV up 88% and 120% respectively.

Henry Hub futures and options are listed by and subject to the rules of NYMEX. For more information, please visit here.

As the world's leading 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. 

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 is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners. 

CME-G

 

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SOURCE CME Group

FAQ

What is the current open interest record for CME Group's Henry Hub futures?

CME Group's Henry Hub futures reached a record open interest of 1.73 million contracts on October 30, 2024.

How much has CME Group's Henry Hub futures trading volume increased in 2024?

Henry Hub futures average daily volume increased 26% year-to-date to 500,000 contracts in 2024.

What percentage of CME Group's Henry Hub trading comes from international markets?

25% of total Henry Hub trading originates from outside the United States, marking an all-time high for international participation.

How has CME Group's Henry Hub options performance changed in 2024?

Henry Hub options average daily volume reached a record of 235,000 contracts, up 62% from the previous year.