Accessing Aluminum futures and options markets
CME Group’s Aluminum futures (ALI) have seen accelerated growth in 2023. Average daily volume (ADV) has increased by 173% and average open interest (AOI) has increased by 430%, YoY through September 2023. Not coincidently, growth in the contract has occurred in parallel to a YoY 81% increase in participants trading our Aluminum futures.
Launched in May 2022, CME Group Aluminum options (AX) have been gaining traction as well, with 167% ADV and 146% AOI growth from year end 2022 through September 2023.
Knowing how to and where to access the liquidity in the futures and option contracts is key to implementing successful trading strategies and hedging programs.
Getting started
Whether you are an individual trader or an institutional trader, the first step in accessing CME Group Aluminum markets is to open and fund a clearing account with a futures commission merchant (FCM), an introducing broker (IB), or a securities broker that is registered to deal in futures markets and have the account permissioned to trade aluminum. Not all brokers support all futures markets, so be sure to select one that supports our Aluminum markets.
View more information on getting started and finding a broker.
Electronic trading access
Accessing Aluminum futures and options can be done electronically via CME Globex. CME Globex is an open access marketplace that allows users to directly enter their own trades, as well as view order books and real-time price data. To access CME Globex, customers must have a CME Group clearing firm relationship, CME Group-certified trading application, and connectivity to CME Globex.
Clients can connect to CME Globex through an independent software vendor (ISV) such as Bloomberg, CQG, Fidessa, or TT, to name a few, or directly via CME Group’s fast, secure, highly configurable front-end platform: CME Direct.
Aluminum futures via CME Direct
Here is a sample view of trading Aluminum futures on CME Direct.
Aluminum options via CME Direct
Here is a sample view of trading Aluminum options on CME Direct.
https://www.cmegroup.com/solutions/market-access/cme-direct.html#overview
QuikStrike
Through CME Direct, clients have access to robust QuikStrike analytics for futures and options.
Request for Quote (RFQ)
In addition to on-screen transparency through the central limit order book (CLOB), users can utilize the Request for Quote (RFQ) functionality embedded within CME Direct and other front-end platforms offered by ISVs.
Using the RFQ function can help uncover liquidity not visible on screen. This article explains using RFQs to identify liquidity in Copper options – similar techniques can be applied to the Aluminum options market.
CME ClearPort and block trades
Clients can privately negotiate trades with an eligible counterparty, execute at a reasonable single price, and clear Aluminum futures and option block trades through CME ClearPort.
Trading firms can register online for CME ClearPort.
Firms can also monitor block trade activity online.
Conclusion
As CME Group Aluminum futures and option markets grow and become key to trading and hedging strategies, knowing how to access these markets is essential. View more information on Aluminum products here.
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All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
