Global derivatives and commodities exchange CME Group announced the first trade of its Used Cooking Oil Methyl Ester (UCOME) futures contracts on 23 September.

Tullett Prebon Energy & Commodities, part of TP ICAP, a leading market infrastructure provider, became the first broker to transact Europe’s first UCOME derivatives contracts between two counterparties.

“As waste-based products are increasingly in demand as a source of clean energy, our new used cooking oil contracts help clients manage the price risks associated with this emerging market,” said CME Group global head of energy Peter Keavey.

“This new product is another example of CME Group’s commitment to developing markets that reflect the evolving energy market and can help meet changing customer preferences.”

CME Group launched four Renewable Fuel Futures contracts on 17 August 2020 based on demand from customers for new tools to help manage exposure to the growing waste oils sector.

The new UCOME and Used Cooking Oil (UCO) futures contracts added to CME Group’s range of energy futures and options.