1. Instrument Introduction

The Micro Copper Futures are contracts launched by CME Group under the root symbol MHC. They replicate the standard copper futures (HG) but at one-tenth the size, offering an exposure of 12,500 pounds of copper per contract. This reduced notional size allows retail traders and small portfolio managers to participate in a market that has traditionally been dominated by institutional players.

2. Reasons to Include in QuantConnect

  • Growing Liquidity: Since their inception, daily volumes and open interest have shown an upward trend, supporting their operational viability.
  • Accessibility: As with the micro gold and silver contracts already available on QC, MHC provides a cost-efficient way to diversify portfolios and hedge exposure to industrial metals.
  • Precise Risk Management: The smaller contract size enables granular position adjustments and partial hedge strategies against copper price fluctuations, which is vital for industrial sectors and quantitative traders.
  • Consistency with Current Offering: Expanding the micro-metals family would further establish QC as a comprehensive platform for CME futures trading.

3. Additional Arguments

  • Market Participation: Copper is a global barometer of economic activity; having a micro contract increases access to this strategic indicator.
  • Projected Growth: CME reports estimate adoption of micro contracts will continue accelerating, driven by increasing retail interest.
  • Examples of Use:
    – Pairs trading between MHC and micro gold/silver for cross-metal strategies.
    – Tactical hedging for copper producers or consumers.
    – Macro models combining interest rate, currency, and commodity signals.

4. Conclusion

Adding the Micro Copper Futures (MHC) will enrich QuantConnect’s ecosystem and unlock new opportunities for research and algorithmic trading. I encourage the community to vote and support this request so we can soon access this valuable instrument on the platform.