- When will the Micro Henry Hub Natural Gas futures and options product be listed for trading?
- Why is CME Group choosing to launch these products?
- What are the contract specifications and how is it different from the currently listed standard-sized Henry Hub futures and options?
- How many contracts are listed at a given time?
- What are the trading hours on CME Globex and submission hours on ClearPort?
- Are these futures and options contracts eligible for block trading?
- Are these futures contracts eligible for TAS trading?
- Are margin credits available for offsetting positions between the Micro Henry Hub Natural Gas futures and their standard-sized counterparts?
- What are the fees for the Micro Henry Hub Natural Gas futures and options contracts?
- What trade matching algorithm will be used for the Micro Henry Hub Natural Gas futures on CME Globex?
- Are there circuit breakers on Micro Henry Hub Natural Gas futures?
- Are Micro Henry Hub Natural Gas futures fungible with other contracts?
1. When will the Micro Henry Hub Natural Gas futures and options product be listed for trading?
Starting trade date November 06, 2023, Micro Henry Hub Natural Gas futures and options will be available for trading on CME Globex and for submission of clearing via CME ClearPort.
2. Why is CME Group choosing to launch these products?
The introduction of Micro Henry Hub Natural Gas futures and options responds directly to customer demand for a smaller, more precise instrument for managing natural gas price exposure. At one-tenth the size of the benchmark Henry Hub (NG) contract, Micro Henry Hub Natural Gas futures and options offer more granularity and smaller margin requirements with the same robust transparency and price discovery of the larger Henry Hub contracts.
3. What are the contract specifications and how is it different from the currently listed standard-sized Henry Hub futures and options?
Compare the contract to the standard-sized contract below:
| NEW MICRO HENRY HUB NATURAL GAS FUTURES | E-MINI HENRY HUB NATURAL GAS FUTURES |
NEW MICRO HENRY HUB NATURAL GAS MONTHLY OPTIONS | NEW MICRO HENRY HUB NATURAL GAS FRIDAY WEEKLY OPTIONS | HENRY HUB NATURAL GAS FUTURES |
|
|---|---|---|---|---|---|
| CONTRACT SIZE | 1,000 MMBtu | 2,500 MMBtu | 1,000 MMBtu | 1,000 MMBtu | 10,000 MMBtu |
| RATIO TO STANDARD CONTRACT | 10:1 | 4:1 | 10:1 | 10:1 | 1 |
| MINIMUM TICK INCREMENT | $0.001 per MMBtu | $0.005 per MMBtu | $0.001 per MMBtu | $0.001 per MMBtu | $0.001 per MMBtu |
| DOLLAR VALUE OF ONE TICK | $1 per contract | $12.50 per contract | $1 per contract | $1 per contract | $10 per contract |
| PRODUCT CODE | MNG | QG | MNO | MN1; MN2; MN3; MN4; MN5 | NG |
| SETTLEMENT TYPE | Financial | Financial | Financial | Financial | Physical |
| EXPIRATION | Trading terminates one (1) business day prior to the expiration of the corresponding contract month of the Henry Hub Natural Gas Futures contract (NG). | Trading shall cease on the business day immediately preceding the last day of trading in the current delivery month of the Henry Hub Natural Gas Futures contract (NG). | Trading terminates on the second business day immediately preceding the expiration of the underlying Micro Henry Hub Natural Gas Futures contract (MNG). | Trading terminates on Friday of the contract week. If Friday is not a business day trading terminates on the prior business day. | Trading terminates on the 3rd last business day of the month prior to the contract month. |
| EXERCISE STYLE | - | - | EUROPEAN | EUROPEAN | - |
| OPTIONS PREMIUM STYLE | - | - | EQUITY-STYLE | EQUITY-STYLE | - |
| TRADING SCHEDULE |
CME Globex: Sunday – Friday: 5:00 p.m. to 4:00 p.m. Central Time (CT) Monday – Friday: 60-minute daily trading halt beginning at 4:00 p.m. CT CME ClearPort: Sunday 5:00 p.m. - Friday 4:00 p.m. CT with no reporting Monday - Thursday from 4:00 p.m. - 5:00 p.m. CT |
||||
| LISTING EXCHANGE | NYMEX | ||||
4. How many contracts are listed at a given time?
There are 24 serial contract months listed for Micro Henry Hub Natural Gas futures and monthly options and two weekly options contracts listed at any given time. The first listed month is December 2023 for Henry Hub Natural Gas futures and monthly options. The first listed weeks are Nov Wk2 and Nov Wk3 for Micro Henry Hub Natural Gas Friday Weekly options.
5. What are the trading hours on CME Globex and submission hours on ClearPort?
Sunday – Friday, 6:00 p.m. – 5:00 p.m. ET, with a trading halt from 5:00 p.m. ET – 6:00 p.m. ET. Please refer to this link.
6. Are these futures and options contracts eligible for block trading?
Yes. Micro Henry Hub Natural Gas futures and options are eligible for block trading through ClearPort.
7. Are these futures contracts eligible for TAS trading?
No, Micro Henry Hub Natural Gas futures will not be eligible for TAS trading.
8. Are margin credits available for offsetting positions between the Micro Henry Hub Natural Gas futures and their standard-sized counterparts?
Margins credits are indicative of their standard-sized counterparts; any estimates are based on current market conditions and are subject to change.
Learn more about Margins FAQs.
9. What are the fees for the Micro Henry Hub Natural Gas futures and options contracts?
Micro Henry Hub futures are part of the NYMEX Fee Schedule.
10. What trade matching algorithm will be used for the Micro Henry Hub Natural Gas futures on CME Globex?
Micro Henry Hub futures and options use a FIFO (first in, first out) algorithm, identical to their standard-sized counterparts.
11. Are there circuit breakers on Micro Henry Hub Natural Gas futures?
Micro Henry Hub futures have dynamic price fluctuation limits (circuit breakers) just like their standard-sized counterparts. Daily price limits for these products can be found here.
Learn more about dynamic circuit breakers.
12. Are Micro Henry Hub Natural Gas futures fungible with other contracts?
Yes. Micro Henry Hub Natural Gas futures are fungible with E-mini Henry Hub Natural Gas futures, Natural Gas (Henry Hub) Penultimate Financial futures, and Henry Hub Natural Gas Penultimate Financial futures.
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.
