Launch of U.S. Midwest Domestic Hot Rolled Coil Steel Average Price Option on the NYMEX Trading Floor and CME ClearPort
To
Members, Member Firms and Market Users
From
Market Regulation Department
Advisory #
SER-6015
Notice Date
November 16, 2011
Effective Date
December 11, 2011

Please be advised that effective Sunday, December 11, 2011, for trade date Monday, December 12, 2011, and pending all relevant CFTC regulatory review periods, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will list a U.S. Midwest Domestic Hot Rolled Coil Steel Average Price Option contract for trading on the NYMEX trading floor and for clearing through CME ClearPort.  The contract is listed with, and subject to, the rules and regulations of NYMEX.

The Exchange will allow exchange for related position (EFRP) transactions to be submitted through CME ClearPort. EFRP transactions will be governed by the provisions of Exchange Rule 538.

Contract Name

U.S. Midwest Domestic Hot Rolled Coil Steel Average Price Option

Code

HRO

Contract Unit

20 Short Tons

Option Type

Financially settled, exercise only upon expiration

Price Quotation

U.S. dollars and cents per ton

Minimum Price Tick

$1.00

Underlying Future

U.S. Midwest Domestic Hot Rolled Coil Steel Index Futures (HRC)

First Listed Month

February 2012

Listing Period

24 consecutive months

Termination of Trading

Trading terminates on the business day prior to the last Wednesday of the named contract month

Strike Price Increment

$5.00 per ton

Rule Chapter

1095

 

Trading Hours

·         Open Outcry:  Monday – Friday 9:00 a.m. to 2:30 p.m. (8:00 a.m.to 1:30 p.m. Chicago Time/CT)

·         CME ClearPort:  Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT)


Fees

Exchange Fees

 

 

Member Day

Member

Cross Division

Non-Member

IIP

 

Pit

  

$4.00

$2.00

$5.00

  

 

Globex

  

N/A

N/A

N/A

  

 

ClearPort

  

$4.00

  

$5.00

  

 
           

Processing Fees

      

 

Member

Non-Member

      

Cash Settlement

$4.00

$5.00

      

Futures from E/A

N/A

N/A

      

 

House Acct

Cust Acct

      

Options E/A Notice

 N/A

N/A

      

Delivery Notice

 N/A

N/A

      

 

 

        

Additional Fees and Surcharges

        

EFS Surcharge

 N/A

        

Block Surcharge

N/A

        

Facilitation Desk Fee

$0.20

        
           
           
                       

For more information please contact Joann Arena at (212) 299-2356.