Access the potential opportunities of the Agriculture, Energy and Metals markets combined into one powerful index. Bloomberg Commodity Index (BCOM) futures and options provide broad-based exposure to commodities without a single commodity or commodity sector dominating the index. Whether used to hedge risk across a wider commodity trading strategy or exclusively to gain exposure to the commodity markets, BCOM provides something for all traders interested in commodities.
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Key features
Diversified commodity exposure
Gain exposure to the commodity markets while insulating your portfolio from individual asset volatility.
Margin and operational efficiencies
Enjoy potential margin offsets and streamlined operations of listed futures and options trading in one marketplace.
Around-the-clock access via CME Globex
Hedge in real time and access liquidity when you need it most.
Reduce risk with central clearing
CME Clearing serves as the central counterparty to every trade, sharing credit risk among clearing members to virtually eliminate it.
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Options on Bloomberg Commodity Index (BCOM) futures
BCOM options provide a new way to access commodities and commodity market movements. The contract offers greater potential capital and margin efficiency to commodity index trading strategies while providing similar exposure to OTC swaps.
About Bloomberg Commodities Index
The Bloomberg Commodities Index, known as BCOM, is a leading commodities benchmark providing broad-based exposure to commodities, without a single commodity or commodity sector dominating the index. BCOM is constructed using 24 of the most traded commodities futures contracts across six sectors, reweighted and rebalanced annually on a price-percentage basis. One third of the target weights is derived according to world production of each commodity and two thirds is derived from the underlying liquidity of each commodities futures market. Weights are then adjusted further to cap commodity and sector exposures enhancing diversification and reducing the impact of idiosyncratic risk. BCOM indices use a consistent, systematic process to best represent the commodities markets.
Understanding capital efficiency with BCOM futures
Whether you are the dealer looking to provide commodity index exposure to your client or the end client, BCOM futures are capital-efficient tools for participants seeking exposure to this type of index.
Assuming a dealer is willing to accommodate $500M in total BCOM exposure for an end client, there are possible savings of ~$75M+ at CME Group via margin offsets if BCOM futures are utilized instead of an OTC swap.
| Swap Side | futures side | |||
|---|---|---|---|---|
| Dealer | BCOM OTC Swap |
$85,000,000 |
$20,774,526 | BCOM Futures |
| CME Underlying Futures Margin | $21,690,403 | CME Underlying Futures | ||
| Total Margin | $106,690,403 | $20,774,526 | Total Margin | |
| Client | BCOM OTC Swap |
$85,000,000 |
$13,000,000 | BCOM Futures |
This information is pulled from CME Margins on 9/9/2024 and subject to change
Dive deeper into Commodity Index products
Learn the fundamentals of the Commodity Index futures and swaps suite at CME Group, including the underlying indices and different ways to access the contracts.
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