- When will the Micro WTI Crude Oil options product be listed for trading?
- Why is CME Group choosing to launch this product?
- What are the contract specifications?
- When do Micro WTI Crude Oil options expire?
- How many contracts will be listed at a given time?
- What are the trading hours on CME Globex and submission hours on ClearPort?
- Are these options contracts eligible for block trading?
- What are the exercise procedures for these contracts?
- What are the fees for the Micro WTI Crude Oil options?
1. When will the Micro WTI Crude Oil options product be listed for trading?
Starting on trade date June 6, 2022, Micro WTI Crude Oil Monthly and Weekly 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 this product?
Micro WTI Crude Oil futures launched in July 2021 and has been one of the most successful product launches in CME Group history.
Based on strong client demand and building on the success of the Micro WTI Crude Oil futures contract, CME Group plans to introduce options on these liquid futures contracts to provide another tool for participants to express their view on the crude oil market.
3. What are the contract specifications and how are they different from the currently listed standard-sized WTI options?
Similar to the differences between WTI Crude Oil futures and Micro WTI Crude Oil futures, these recently announced Micro WTI Crude Oil options will be 1/10 the size of the standard WTI Crude Oil option. Unlike the standard-sized options, Micro WTI Crude Oil options will be financially settled at expiration.
| PRODUCT SPECIFICATIONS | MICRO WTI CRUDE OIL OPTIONS | MICRO WTI CRUDE OIL WEEKLY OPTIONS |
|---|---|---|
| PRODUCT CODE | MCO | MW1 - MW5 |
| CONTRACT SIZE | 100 barrels | 100 barrels |
| RATIO TO THE STANDARD | 1/10 | 1/10 |
| MINIMUM TICK INCREMENT | $0.01 per barrel | $0.01 per barrel |
| DOLLAR VALUE OF A TICK INCREMENT | $1 per contract | $1 per contract |
| LISTING TYPE | Monthly | Friday Weekly |
| SETTLEMENT TYPE | Financial | Financial |
| OPTIONS STYLE | European | European |
| MARGIN STYLE | Equity Style | Equity Style |
| LISTING EXCHANGE | NYMEX | |
4. When do Micro WTI Crude Oil options expire?
Micro WTI Crude Oil options expire at 1:30 p.m. CT on the day of expiration. The monthly Micro WTI Crude Oil option expires on the same date as the standard-size WTI Crude Oil option, two days before the expiration of the Micro WTI Crude Oil futures. The Micro WTI Crude Oil Weekly options expire each Friday.
5. How many contracts will be listed at a given time?
There will be 12 consecutive contract months listed for Micro WTI Crude Oil options, which is the same as the underlying Micro Crude Oil futures listings. The first listed month will be July 2022.
The next two Fridays of Micro WTI Crude Oil Weekly options will be listed at any one time. No weekly contract will be listed if expiration occurs on the same day as the corresponding monthly option expiration.
6. 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.
7. Are these options contracts eligible for block trading?
Yes, pending all relevant CFTC regulatory review periods, Micro WTI Crude Oil options will be eligible for block trading. The minimum block threshold will be 100 contracts.
8. What are the exercise procedures for these contracts?
Micro WTI Crude Oil options will be financially settled upon expiration.
9. What are the fees for the Micro WTI Crude Oil options?
Micro WTI Crude Oil options will be part of the NYMEX Fee Schedule.
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.
