CHICAGO–(BUSINESS WIRE)–The Small exchange, a futures exchange offering smaller, simpler products for retail clients, launched Small US Crude Oil Futures (SMO) – a commercial product with a small efficient line to one of the most consumed energy sources in the world.
SMO allows small investors and traders to access the US crude oil market with the same institutional grade instruments as large traders. SMO contracts are cheaper than most existing futures contracts and more capital efficient than comparable exchange traded oil funds, while providing pure exposure to one of the most actively traded commodities in the world.
“Small investors and traders now have a petroleum product that meets their risk tolerance, allows easier access with lower margin requirements and encourages portfolio diversification,” said Don Roberts, president and chief executive officer. management of Small Exchange. “We strive to create products that will give small investors a level playing field with large institutions.”
The US Small Crude Oil Futures Contract is a cash settled future with an underlying US-referenced blend of domestic sweet crudes with API gravity between 38 ° and 43 ° and lower sulfur content. at 0.42%, and it will be available to trade through a number of brokerage firms, including Edge Clear, Interactive Brokers and Tastyworks, among others.
“At Edge Clear we have a long history of demanding a small crude petroleum product. With existing contracts, the independent online trader has to use a lot of leverage and the risk of physical delivery is too high, ”said Morad Askar, founder of Edge Clear LLC. A Chicago-based term brokerage firm. “We are delighted to see the Small Exchange intensify and meet this demand. We believe this will be a popular product, and personally, I can’t wait to trade it myself. ”
The small exchange began operations in May 2020, and as of May 17, it had 21 partners, including some of the largest trading companies and markets in the world. It has launched eight products spanning everything from stocks and bonds to commodities and currencies, and has traded more than $ 2.4 billion in notional value. To learn more about the Small Exchange offering, visit www.thesmallexchange.com.
About Small Exchange: Chicago-based Small Exchange – backed by award-winning industry innovators and powered by a proprietary matching engine – is a designated contracts marketplace (DCM) registered with the Commodity Futures Trading Commission (CFTC). The Small Exchange’s mission is to become the world’s largest client-centric futures exchange, delivering products that bridge the product gap for investors of all sizes by providing smaller, larger futures products. capital efficient, simple to use and easy to understand for everyone. participants. The company will facilitate the trading of proprietary products created on the exchange for all types of market participants including, but not limited to, Market Makers / Liquidity Providers, Introducing Brokers (IBs), Dealers of forward commission (FCM), proprietary trading companies and hedge funds. , all with a primary focus on the public retail customer. Please visit www.thesmallexchange.com for more information.