CME Group launched trading and clearing services for three new NYISO five megawatt (MW) peak calendar month day-ahead LBMP swap options contracts. The company has said that trading will be available on the New York trading floor, and clearing services will be available through CME ClearPort.
The flexible clearing services are open to over-the-counter (OTC) market participants to mitigate counterparty risk and provide neutral settlement prices across asset classes, beginning on August 23 for trade date August 24.
CME has said that these options contracts add to its current suite of East Coast regional electricity risk management products, providing useful hedging tools for commercial and other financial traders.
