In this report
- E-mini S&P 500 ESG futures continue to build market-leading liquidity in Q3
- Battery metals offering grows with the launch of Cobalt Hydroxide futures
- As the EV revolution takes hold, Lithium futures relevance grows
- Options on Weather futures expanded to cover 18 cities globally
- U.S. Soybean production has dramatically reduced its carbon footprint
- Corn in the U.S. has seen gains across all major sustainability metrics
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E-mini S&P 500 ESG futures continue to build market-leading liquidity in Q3
Sustainable investing remains a key focus for equity investors and the need for capital-efficient derivatives continues to rise. E-mini S&P 500 ESG futures allows market participants to gain price exposure to an index that closely tracks the performance of the S&P 500, while adhering to ESG principles. With increasing customer interest and new participants entering the market, the contract reached a new single-day volume record of 32.4K contracts on September 14. Additionally, it had an open interest of 22.9K contracts on September 13.
E-mini S&P Europe 350 ESG futures enable investors to capture benchmark European equity exposure while iterating ESG exposure. The futures are cash-settled to the S&P Europe ESG Index, a Pan-European index covering developed markets across over 15 countries and considered compliant with Article 8 of the SFDR. Since launch, 4.4K contracts have traded.
Battery metals offering grows with the launch of Cobalt Hydroxide futures
Cobalt Hydroxide CIF CJK (Fastmarkets) futures empower tomorrow’s technology, today. Launched on October 23, Cobalt Hydroxide futures are financially settled against the monthly average of Fastmarkets’ daily assessments for cobalt hydroxide CIF China.
The contract provides a solution that promotes price transparency and streamlines price risk management for the growing needs of the EV and battery manufacturing sectors.
As the EV revolution takes hold, Lithium futures relevance grows
Lithium Hydroxide futures, which launched in 2021, have seen accelerated adoption in 2023. Lithium demand is set to increase strongly over the coming years, increasing price risk management needs in the EV industry. On average, 136 contracts (or 136 metric tons) traded per day in September, while open interest surged to over 7K contracts (or 7K metric tons) that same month.
Options on Weather futures expanded to cover 18 cities globally
In August 2023, options on Heating Degree Day (HDD), Cooling Degree Day (CDD), and Cumulative Average Temperature (CAT) futures launched covering key cities in the U.S., Europe, and Asia.
Traditionally traded by utility companies, our complex of Weather futures and options has seen increased participation. They have reached a record open interest (OI) of 230K contracts, with average daily volume (ADV) up 285% from 2022.
U.S. Soybean production has dramatically reduced its carbon footprint
Over the past four decades, federal and state regulation, voluntary participation, and strong national record-keeping have all contributed to a significant decrease in the land, water, and energy use of U.S. soybean production per bushel.
Corn in the U.S. has seen gains across all major sustainability metrics
In conjunction with widespread voluntary implementation of environmental best practices established by American farmers, corn production is subject to a variety of national sustainability and conservation regulations. These points of focus have led to impressive advancements across all sustainability metrics since their implementation in the 1980s.
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.
