Osaka Exchange, a subsidiary of Japan Exchange Group Inc., is to start “CME Group Petroleum Index Futures” in line with the launch of next-generation derivatives trading system J-GATE 3.0 on September 21, 2021.
CME Group Petroleum Index TM is an index calculated and distributed by CME Group and it is comprised of three futures contracts: WTI Crude Oil Futures, RBOB Gasoline Futures, and NY Harbor ULSD Futures listed on NYMEX. The weighting of each component within the index is set as follows: WTI Crude Oil 72%, RBOB Gasoline 13% and NY Harbor ULSD 15%. The weightings will be reviewed annually.
OSE expects that the CME Group Petroleum Index Futures will enable individual investors to diversify their portfolios managed in Japanese yen and provide opportunities to hedge their position.
CME Group Petroleum Index Futures also has the following features designed to help investors, especially individuals:
- A relatively small notional amount (between JPY one and two million per contract at the current crude oil price)
- Cash settled contract without physical delivery
Please refer to the following website for details.