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 All matters pertaining to rules and specifications herein are made subject to and are superseded by official Exchange rules.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.
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