Natural gas is formed either by methane-releasing microorganisms in swamps or by pressurizing organic material deep underground. These two processes are geographically rare; however, despite such particular factors for natural gas formation, there are three major reserves in Canada, the U.S., and Russia. Utilized in almost everything from major electricity generation to fertilizers, natural gas has many applications and, perhaps, a bright future in green transportation. Although notoriously volatile in markets, natural gas has consistently grown to nearly a third of world energy consumption over the past decade.
| Natural Gas Futures Contract Specifications | |
| Contract Size | 10,000 million British thermal units (mmBtu) |
| Price Quotation | U.S. dollars and cents per mmBtu. |
| Grade And Quality | Natural Gas meeting the specifications set forth in the FERC-approved tariff of Sabine Pipe Line Company as then in effect at the time of delivery shall be deliverable in satisfaction of futures contract delivery obligations. |
| Trading Hours | CME Globex: Sunday – Friday 6:00 p.m. – 5:15 pm ET with a 45-minute break each day beginning at 5:15 pm ET |
| CME ClearPort: Sunday – Friday 6:00 p.m. – 5:15 pm ET with a 45-minute break each day beginning at 5:15 pm ET | |
| Minimum Price Fluctuation | $0.001 per MMBtu |
| Product Code | CME Globex: NG |
| CME ClearPort: NG | |
| Clearing: NG | |
| TAS: NGT | |
| Listed Contracts | The current year plus the next twelve calendar years. A new calendar year will be added following the termination of trading in the December contract of the current year. |
| Settlement Method | Deliverable |
| Last Trade Date | Trading of any delivery month shall cease three (3) business days prior to the first day of the delivery month. In the event that the official Exchange holiday schedule changes subsequent to the listing of a Natural Gas futures, the originally listed expiration date shall remain in effect. In the event that the originally listed expiration day is declared a holiday, expiration will move to the business day immediately prior. |
| Trade At Marker Or Trade At Settlement Rules | Trading at settlement is available for spot (except on the last trading day), 2nd, 3rd and 4th months and subject to the existing TAS rules. Trading in all TAS products will cease daily at 2:30 PM Eastern Time. The TAS products will trade off of a “Base Price” of 0 to create a differential (plus or minus 10 ticks) versus settlement in the underlying product on a 1 to 1 basis. A trade done at the Base Price of 0 will correspond to a “traditional” TAS trade which will clear exactly at the final settlement price of the day. |
| Settlement Procedures | Natural Gas Futures Settlement Procedures |
| Exchange Rules | These contracts are listed with, and subject to, the rules and regulations of NYMEX |
| Source: CME Group | |
Last updated September 2015
Additional Info
Recent Posts on Natural Gas
- Beyond the Spotlight: April 20, 2020 (Nat Gas, Bean Oil, Sugar) (4/20/2020) - Beyond the Spotlight is a weekly video released on Mondays that spotlights two or three markets that may become trading opportunities for the week ahead. This enables you as a subscriber of the Trade Spotlight advisory service to look ahead with us, while potentially creating additional trading opportunities for yourself. The week’s video linked below… Read more.
- Trade Spotlight: Futures – Weekly Summary: Natural Gas (3/27/2020) - Went long the Natural Gas futures market, however the position is under pressure as the upside monentum has not picked up as anticipated.
- Beyond the Spotlight: October 07, 2019 (Pound, Oil, Gas) (10/7/2019) - Beyond the Spotlight for the week of October 07, 2019 covers the British Pound, Crude Oil, and Natural Gas markets. Watch now to look ahead with us, while potentially creating additional trading opportunities for yourself.