CME Group, the world's leading derivatives marketplace, has announced plans to introduce Micro Henry Hub futures and options on November 6, pending all necessary regulatory reviews. These new contracts, which will be listed by and adhere to the rules of NYMEX, will provide global energy traders with additional flexibility in managing their natural gas exposure.

The Micro Henry Hub futures and options will be smaller in size compared to the benchmark Henry Hub futures and options, with a contract size that is one-tenth of the original. The contracts will be cash-settled, according to a press release.

Peter Keavey, Global Head of Energy and Environmental Products at CME Group, expressed enthusiasm for the launch of these new contracts. He stated, "Our new Micro Henry Hub futures and options contracts will provide global energy traders with additional flexibility to manage their natural gas exposure with precision. The launch of these smaller contracts is particularly well-timed as Henry Hub's significance as a global benchmark continues to grow. We look forward to helping a wider range of global investors access the liquidity and efficiency of our energy markets."

The introduction of these micro contracts comes at a time when the market is experiencing positive growth. The average daily volume of full-sized Henry Hub futures contracts has risen by 14% compared to the previous year, and there has been a 3% increase in volume from outside the U.S., accounting for 21% of the total volume.

CME Group's expansion into Micro Henry Hub futures and options aims to meet the growing demand for smaller contracts and provide market participants with more precise risk management tools. These new contracts will enable traders to access the liquidity and efficiency of CME Group's energy markets while managing their natural gas exposure effectively.