This is a monthly cash-settled derivatives contract listed on both Intercontinental Exchange and the Chicago Mercantile Exchange. It was launched in 2012 and reflects a standard lot size of 10,000 MMBtu.

The derivatives contract is settled on the Platts JKM daily physical spot price assessment for LNG cargoes delivered into Japan, South Korea, China and Taiwan, which import nearly 60% of the world’s LNG.

JKM futures are based on prices achieved in financial markets rather than on prices for physical cargoes achieved in commodity markets.

The JKM futures market is relatively illiquid beyond six months, compared to more mature derivatives markets, such as oil futures — which means the quotes may be less indicative of market expectations, although this market has been growing over recent years (2018) and this growth is expected to continue.