About CME European Seasonal Strip Weather Heating Degree Day Futures

CME® Seasonal Strip Weather futures and options enable customers to select the months within a season they would like to trade. They represent an expansion of existing seasonal CME Weather products and are a scalable product that customers can tailor to suit their individual needs.

Regular seasonal CME Weather products are based on a winter season (November - March) and a summer season (May - September). CME Seasonal Strip Weather products add April to the summer season and October to the winter season so that all calendar months are available for trading. The months that customers choose in designating a seasonal strip trade do not have to be consecutive, but they do have to be in the same season. For instance, in the winter season a customer can trade January versus March without including the months of November, December and February.

Different cities traditionally have greater weather volatility in certain months. CME Seasonal Strip Weather products enable traders to create better risk management tools that specifically focus on the months that pose the greatest risk in each location. They also enable customers to offset sudden changes in weekly forecasts without being limited to trading an entire season.