The expansion will include an expiry for every day of the trading week.
Global derivatives marketplace CME Group launched an expanded suite of Weekly agricultural options on grains and oilseed futures and made them available for trading with an expiry for every day of the trading week, officials say.
“CME Group will provide market participants with maximum flexibility as we head into the growing season,” says John Ricci, managing director and global head of agricultural markets, at CME Group, in a prepared statement. “Amid continued economic uncertainty, demand for our short-term options continues to increase as clients look for more tools to efficiently manage price risk.”
“In January, Weekly agricultural options ADV [average daily volume] hit 28,037, the third highest month on record,” according to the CME Group. “Monday, Tuesday, Wednesday, and Thursday Weekly options on corn, soybean, wheat, soybean oil, and soybean meal futures are listed by and subject to the rules of CBOT [Chicago Board of Trade].”
Matthew Garmon, head of trading at Greenfield Commodities, says that his firm is “very pleased” with the expansion. “It’s great to be able to match expirations with key events like WASDE [World Agricultural Supply and Demand Estimates] reports or weekends that carry significant macro risk. Daily expirations will help all stakeholders manage risk with better precision. It’s a lot easier for people to be decisive on options structures when they know they’re investing in expirations that cover exactly the days that they need,” Garmon says in a statement.
“The new Weekly agricultural options on grains and oilseed futures will give traders enhanced flexibility to express short-term views with efficiency,” says Steve Sanders, executive vice president of marketing and product development at Interactive Brokers, in a statement.
CME Group exchanges facilitate derivatives trading across major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals, officials say.
The CME Group offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec, and foreign exchange trading on the EBS platform, officials say. The company also operates central counterparty clearing via CME Clearing.
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