CME Group Announces Launch Of Options On Bloomberg Community Index

Global derivatives market, CME Group will be launching options on Bloomberg’s commodity Index, according to an announcement by the firm. The options are scheduled to go live on September 23, although it needs to pass regulatory review. In line with the development, CME Group stated that it has extended its licensing partnership with Bloomberg community index products to 2027.

The Integration Will Ensure Margin Efficiency And Higher Capital

The update revealed that BCOM futures will offer a new way for market participants to have wider market exposure. It also comes with more flexibility in having different views on movements in the commodity market.

Global Head of Equity Index Products at CME Group, Paul Woolman, commented on the development. He stated that the company is excited about the inclusion of options on BCOM futures in its range of index products. The license renewal is another statement that both firms want to continue offering vital risk management tools.

The new options contracts will take advantage of the liquidity and strengths of the existing BCOM futures contracts that have witnessed an increase in open interest and volume this year. The options contracts have surged by over 88% from last year. The new options for BCOM’s future will ensure potential margin efficiency and increased capital, according to Woolman. It will also provide comparable exposure to OTC swaps.

Global Head of Index Linked Products at Bloomberg, Umesh Gajria, stated that the company is proud to see the growth and development of its flagship BCOM index. The new product is designed with strong backing from exceptional data and research.

Futures And Options Gain Momentum Among Traders

The extension of the partnership is also another indication that the product suit is gaining momentum and popularity. It offers investors additional opportunities for hedging and diversifying their portfolios.

CME Group is the biggest derivatives marketplace. It offers clients several market features, including optimized portfolios, cash and OTC markets, options, and trade futures. It provides the market for traders and investors to easily analyze market data before making important trading decisions.

CME Group offers a comprehensive range of global market benchmark products across several market classes based on metals, agricultural products, energy, foreign exchange, equity indexes, and interest rates.

The firm, via the CME Globex platform, offers options and futures trading. It also offers foreign exchange trading and fixed-income trading through BrokerTec. Additionally, it manages CME Clearing, a major central counterparty clearing provider.