CME Group announces the launch of new electricity swaps contracts

CME Group announces the launch of new electricity swaps contracts

10/09/09

CME Group, the world's largest and most diverse derivatives marketplace, today announced the launch of trading and clearing services for 18 new ERCOT and PJM peak and off-peak futures and options contracts. Trading will be available on the New York trading floor and clearing services will be available through CME ClearPort(R), a set of flexible clearing services open to over-the-counter (OTC) market participants to substantially mitigate counterparty risk and provide neutral settlement prices across asset classes. Trading and clearing are scheduled to begin on September 20 for trade date September 21. These contracts are listed by and subject to the rules and regulations of NYMEX.

The contracts and commodity codes for the swap futures will be:

  • PJM DOM zone peak calendar month day-ahead LMP (R5)
  • PJM DOM zone off-peak calendar month day-ahead LOM (U1)
  • ERCOT Houston Zone MCPE 5 MW peak (I1)
  • ERCOT Houston Zone MCPE 5 MW off-peak (I2)
  • ERCOT Houston Zone MCPE 5 MW peak calendar day (I3)
  • ERCOT Houston Zone MCPE 5 MW off-peak calendar day (I4)
  • ERCOT North Zone MCPE 5 MW peak (I5)
  • ERCOT North Zone MCPE 5 MW off-peak (I6)
  • ERCOT North Zone MCPE 5 MW peak calendar day (I7)
  • ERCOT North Zone MCPE 5 MW off-peak calendar day (I8)
  • ERCOT South Zone MCPE 5 MW peak (I9)
  • ERCOT South Zone MCPE 5 MW off-peak (J1)
  • ERCOT South Zone MCPE 5 MW peak calendar day (K1)
  • ERCOT South Zone MCPE 5 MW off-peak calendar day (M1)
  • ERCOT West Zone MCPE 5 MW peak (N1)
  • ERCOT West Zone MCPE 5 MW off-peak (O1)
  • ERCOT West Zone MCPE 5 MW peak calendar day (R1)
  • ERCOT West Zone MCPE 5 MW off-peak calendar day (R4)

Utilities and marketers will use these products, along with our other zonal products, to provide liquidity and transparency as they hedge their risk.

For the monthly contracts, the first listed contract will be October 2009, and they will be listed for the current year plus the next five calendar years. The first day of trading for the daily contracts will be September 21, and they will be listed for the current month plus the next month.

The peak contracts will be 80 megawatt hours in size, and the off-peak contracts will be five megawatt hours. The PJM contracts will have a minimum price fluctuation of $0.05 per megawatt hour, while the ERCOT contracts will have a $0.01 per megawatt hour tick size.

For more information please visit www.cmegroup.com/clearport.