YellowJacket’s prices of off-exchange contracts traded or quoted over YellowJacket’s OTC trade platform are now being incorporated into daily settlement price calculations for CME Group weather futures and options on futures contracts.
YellowJacket will provide CME Group with data, reflecting bids, offers and trades quoted on its peer-to-peer, private, bilateral trading platform, YJ ENERGY.
“YellowJacket is in a unique position to provide the market with truly comprehensive, accurate and anonymous pricing for weather contracts. Now the market can leverage data and settlement prices that are reflective of all weather derivative market activity facilitated off-exchange. This will help firms increase the accuracy and effectiveness of trading strategies, analytics, portfolio management and more,” says Jacob Pechenik, president and CEO, YellowJacket.
Specific benefits to the market include comprehensive pricing and benchmark data, greater accuracy in analytics and historical pricing databases and lower margin requirements.