Fair Exchange (FairX) has launched Micro Crude Oil Futures, a cash-settled contract, based on the West Texas Intermediate (WTI) crude oil benchmark.
The new Chicago-based global futures exchange believes its micro crude oil futures is the most cost-effective way for the retail market to trade the price of crude oil.
The FairX Micro Crude Oil Futures contract is sized at 100 barrels and will trade 23 hours a day, Sunday through Friday, from 6 pm ET through 5 pm ET.
The exchange is still in its infancy, having been launched earlier this year in collaboration with many of the leading online brokerage firms, clearing firms and liquidity providers.
The CFTC-regulated venue also lists futures on the Bloomberg US Large Cap Index, tracking the largest 500 companies by market cap, and on the SuperTech Index, tracking 15 of the largest and most actively traded companies engaged in high-growth technology, media and manufacturing industries.
Neal Brady, Chief Executive Officer at FairX, said: “We’re excited to broaden our product line with Micro Crude Oil Futures as we continue on our mission to provide the retail sector with around-the-clock, low-cost opportunities to access liquid futures markets. Our partnership with Nodal Clear provides critical risk management to our business model as we expand into this new asset class.”
“Nodal Clear is excited to provide the clearing services to support the launch of FairX Micro Crude Oil Futures, enabling retail access to this significant commodity,” said Paul Cusenza, Chairman and CEO of Nodal Clear, the clearing partner of FairX.
Boris Ilyevsky, Chief Product and Strategy Officer of FairX, commented: “We’re breaking down the barriers that have kept many individual investors from participating in the futures market and in key sectors like oil by designing our products specifically for them – making them straightforward and easy to understand with low fees and free market data. We’ve listened closely to what retail investors need and believe our products appeal not only to experienced futures traders but to those individuals who have long desired to take positions in markets that have been cost-prohibitive, too large or unnecessarily complex.”
FairX is a trademarked operating name of LMX Labs and was founded to meet the needs of the global retail investor. The Designated Contract Market (DCM) is regulated by the U.S. Commodity Futures Trading Commission (CFTC).
Several of the largest futures broker-dealers in the United States have partnered with FairX, including E*TRADE, TD Ameritrade, StoneX, and its subsidiaries.