1) NYMEX Energy Options Update
April 2015
Jeff White – Senior Director, Energy Products & Services
2) Disclaimer
Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged investment, and because only a
percentage of a contract’s value is required to trade, it is possible to lose more than the amount of money deposited for a futures
position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of
those funds should be devoted to any one trade because they cannot expect to profit on every trade. All references to options refer to
options on futures.
Swaps trading is not suitable for all investors, involves the risk of loss and should only be undertaken by investors who are ECPs
within the meaning of section 1(a)12 of the Commodity Exchange Act. Swaps are a leveraged investment, and because only a
percentage of a contract’s value is required to trade, it is possible to lose more than the amount of money deposited for a swaps
position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of
those funds should be devoted to any one trade because they cannot expect to profit on every trade.
Any research views expressed are those of the individual author and do not necessarily represent the views of the CME Group or its
affiliates.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of
Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of
Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange,
Inc. COMEX is a trademark of Commodity Exchange, Inc. KCBOT, KCBT and Kansas City Board of Trade are trademarks of The
Board of Trade of Kansas City, Missouri, Inc. All other trademarks are the property of their respective owners.
The information within this presentation has been compiled by CME Group for general purposes only. CME Group assumes no
responsibility for any errors or omissions. Additionally, all examples in this presentation are hypothetical situations, used for
explanation purposes only, and should not be considered investment advice or the results of actual market experience.
All matters pertaining to rules and specifications herein are made subject to and are superseded by official Exchange rules. Current
rules should be consulted in all cases concerning contract specifications.
Copyright © 2015 CME Group. All rights reserved.
© 2015 CME Group. All rights reserved.
3) NEW RECORD: 46% of NYMEX Energy Options traded
electronically in March
NYMEX Energy Options – Total Volume and Electronic Percentage
50%
400
45%
350
300
35%
250
30%
200
25%
20%
150
15%
100
10%
50
5%
0
0%
MTD ADV
% Electronic
© 2015 CME Group. All rights reserved.
Electronic Percentage
Average Daily Volume (000s)
40%
4) WTI options (LO) achieved record electronic volume in
Q1 with almost 114,000 contracts/day
NYMEX WTI Options (LO) Electronic Volume and Percentage
70%
60%
100
50%
80
40%
60
Electronic Percentage
80%
120
Average Daily Volume (000s)
140
30%
40
20%
20
10%
0
0%
Elec MTD ADV
% Electronic
© 2015 CME Group. All rights reserved.
5) WTI option RFQ execution reached all-time highs in Q1
with over 33k lots/day traded as a spread
NYMEX Crude Options - Electronic
Spread Volume
Crude Oil Spread Type
35%
35
30%
30
25%
25
20%
20
15%
15
10%
10
5
5%
0
0%
Spread ADV
Spread Vol % of Total Electronic Vol
Electronic Spread Avg Daily Vol (000s)
40
Butteflies
18%
Custom
6%
Vertical
59%
Straddles
6%
Diagonal
2%
Other
0%
Horizontal
3%
Risk Reversals
2%
Strangle
4%
% Spread
© 2015 CME Group. All rights reserved.
6) Open Interest in the WTI Crude Oil 1-Month CSOs
currently sits near three year highs
WTI 12 month forward curve:
September 14 vs. Last Month
$58
94
35
$54
$52
92
$50
91
$48
91
$46
90
$44
90
$42
89
1
2
3
4
5
6
Settle on 3/31/15
7
8
9
10
11
Last Month
92
1000
30
800
25
600
20
15
400
10
200
5
0
0
12
Settle on 9/1/2014
Average Daily Volume
Open Interest
© 2015 CME Group. All rights reserved.
Open Interest (Thousands)
93
Average Daily Volume (000s)
93
$56
September 2, 2014
NYMEX WTI 1-Month Calender Spread
Options
7) Natural Gas European Options (LNE) Liquid through
October on Globex
© 2015 CME Group. All rights reserved.
8) RFQ Activity has increased for Natural Gas European
Options (LNE) with an almost 100% response rate
© 2015 CME Group. All rights reserved.
9) March Highlights Summary
Energy Options
NYMEX WTI Options
Refined Products
Natural Gas
European Options
NEW RECORD:
(LO) Options achieved
record volume in Q1 with
almost 114,000 contracts
per day
NEW RECORD:
Natural Gas European
Options (LN) activity
grew on screen, with
the highest volumes
traded since October
46% of energy options
traded electronically in
March
31% of refined product
spreads traded
electronically in March,
a new record
© 2015 CME Group. All rights reserved.
10) Thank you
For further information please contact:
energy@cmegroup.com