The Small Exchange Introduces Small US Crude Oil Futures
CHICAGO–(BUSINESS WIRE) – The Small Exchange, a futures exchange that offers smaller, simpler products for retail customers, launched Small US Crude Oil Futures (SMO) – a trading product that takes a small, efficient line to one of the most widely consumed energy sources in the EU represents the world.
SMO enables smaller investors and traders to access the US crude oil market with the same institutional quality tools as larger traders. SMO contracts are cheaper than most existing futures and more capital efficient than comparable exchange traded oil funds, while also offering pure exposure to one of the most actively traded commodities in the world.
“Retail investors and traders now have a crude product that meets their risk tolerance, allows for easier access with lower margin requirements, and promotes portfolio diversification,” said Don Roberts, President and CEO of Small Exchange. “We strive to develop products that put the smaller investor on an equal footing with the larger institutions.”
The Small US Crude Oil Futures contract is a cash settled future that will be based on a US-named blend of domestic light sweet crude oils with an API gravity between 38 ° and 43 ° and a sulfur content of less than 0.42% be available for trading through a number of brokerage firms including Edge Clear, Interactive Brokers, and Tastyworks.
“At Edge Clear, we’ve been relying on a small crude oil product for a long time. The online independent retailer has to leverage the existing contracts and the risk of physical delivery is too high, ”said Morad Askar, founder of Edge Clear LLC. A Chicago-based futures brokerage firm. “We are very pleased that the Small Exchange is reinforcing and meeting this demand. We believe this will be a popular product and personally I can’t wait to start trading it myself. ”
The Small Exchange started trading in May 2020 and has had 21 partners as of May 17, including some of the world’s largest trading companies and market markets. The company has launched eight products, spanning everything from stocks and bonds to commodities and currencies, with a face value of more than $ 2.4 billion. For more information on the Small Exchange offering, please visit www.thesmallexchange.com.
About Small Exchange: Backed by award-winning industry innovators and powered by a proprietary trade matching engine, the Chicago-based Small Exchange is a registered Designated Contract Market (DCM) with the Commodity Futures Trading Commission (CFTC). The Small Exchange’s mission is to become the world’s largest customer-centric futures exchange, offering products that bridge the product gap for investors of all sizes by offering futures products that are smaller, more capital efficient, more user-friendly and easy to understand for all participants . The company will facilitate trading in exchange-created proprietary products for all types of market participants including, but not limited to, Market Makers / Liquidity Providers, Introducing Brokers (IBs), Futures Commission Merchants (FCMs), Proprietary Trading Firms, and Hedge Funds, all with a primary focus on the public retail customer. Please visit www.thesmallexchange.com for more information.