CME Globex to make available new exchange defined Energy Gasoil Crack spreads
Effective Sunday, September 18 (trade date Monday, September 19), new exchange defined Energy Gasoil Crack spreads will be made available for trading on CME Globex. The new spreads will use a new strategy type (TB) and trade at a reduced tick.
The TB spread is an inter-commodity ratio futures spread allowing the simultaneous purchase (sale) of a distilled product (i.e., Low Sulphur Gasoil) with a corresponding sale (purchase) of the raw product from which it was produced (i.e., Crude Oil).
To support the launch of the Gasoil Crack spreads on August 28, tag 6937-Asset for European Low Sulphur Gasoil (100mt) Bullet futures will change from GLI to 7F.
The Gasoil Crack spread is the differential spread involving the simultaneous purchase (sale) of a distilled product (e.g., Low Sulphur Gasoil) with a corresponding sale (purchase) of the raw product from which it was produced (e.g., Crude Oil). The Gasoil Crack spread will trade at a reduced tick (1) and is priced in terms of the raw product which necessitates a mathematical conversion of the distilled product’s price.
The Gasoil Crack Spread has two different products belonging to the same product group (e.g. energy) and two legs. Both legs must be of the same expirations.