CME Group Announces First Trade of New European Renewable Fuel Contract

CME Group Announces First Trade of New European Renewable Fuel Contract

CHICAGO and LONDON (STL.News) CME Group, the world’s leading and most diverse derivatives marketplace, today announced the first trade of the Used Cooking Oil Methyl Ester (UCOME) futures contracts.  Ten contracts were traded on September 16, 2020. Open interest is at 65 contracts as of September 22, 2020.

“As waste-based products are increasingly in demand as a source of clean energy, our new used cooking oil contracts help clients manage the price risks associated with this emerging market,” said Peter Keavey, Global Head of Energy at CME Group.  “This new product is another example of CME Group’s commitment to developing markets that reflect the evolving energy market and can help meet changing customer preferences.”

Tullett Prebon Energy & Commodities, part of TP ICAP, a leading provider of market infrastructure, became the first broker to transact Europe’s first UCOME derivatives contracts between two counterparties.

CME Group launched four Renewable Fuel Futures contracts on August 17, 2020, based on demand from customers for new tools to help manage exposure to the growing waste oils sector.  The UCOME contracts are financially settled to the Argus Media UCOME FOB ARA assessment.

Adrian Binks, Chairman and Chief Executive of Argus Media added, “We are delighted that the first UCOME versus gasoil spread trade has been completed today.  These hedging tools will help companies manage risk in this increasingly important and rapidly expanding market.”

The new Used Cooking Oil (UCO) and Used Cooking Oil Methyl Ester (UCOME) futures contracts expand CME Group’s already robust suite of energy futures and options. UCO and UCOME are listed with and subject to the rules of NYMEX.

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