Effective Sunday, April 7, 2013 for trade date Monday, April 8, 2013, and pending all regulatory review periods, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will introduce Trading at Marker (Platts TAM) based on the Platts 3:15 p.m. Eastern Time (ET) futures assessment for its New York Harbor ULSD Heating Oil Futures contract (code HO) and RBOB Gasoline Futures contract (code RB). Platts TAM trading will be available in the first two (2) contract months of HO and RB and in intra-commodity spreads between the first and second contract months in those products.
As with all other existing TAM and TAS-eligible futures, Platts TAM in HO and RB will be permitted at the TAM price or at a differential between one and ten ticks higher or lower than the TAM price. Platts TAM will be conducted pursuant to NYMEX Rule 524 (Trading at Settlement (TAS), Trading at Marker (TAM) and Matched Order (MO) Transactions and will be available for trading on CME Globex, the NYMEX trading floor, and for submission for clearing through CME ClearPort.
Platts TAM trading in the HO and RB futures contracts will be the price established and published by Platts, based on the methodology employed by Platts in establishing the 3:15 p.m. futures assessment as set forth in its Platts Methodology Statement which is available on the Platts website (www.platts.com).
TAM trading is analogous to existing Trading at Settlement (TAS) trading wherein parties are permitted to trade at a differential to a not-yet-known price. Important information on regulatory considerations for market participants engaging in Platts TAM or TAS transactions appears in NYMEX & COMEX Market Regulation Advisory Notice RA1306-4.
Also effective on trade date Monday, April 8, 2013, Platts TAM in the HO and RB futures contracts will be available for block trading pursuant to the requirements of NYMEX Rule 526 (Block Trades) at a minimum block quantity of 25 contracts. Additional information on TAM block trades is set forth in the NYMEX & COMEX Market Regulation Advisory Notices RA1306-4 and RA1301-6.
6603Platts TAM - Eligible Products and Contract Months on CME Globex
CME Globex Product Name and Contract Months
HOP New York Harbor ULSD Heating Oil Futures (code HO)
spot month and 2nd month; and nearby/second month calendar spreads
RBP RBOB Gasoline Futures (code RB)
spot and 2nd month; and nearby/second month calendar spreads
Further, NYMEX will publish several non-tradable volume-weighted average price (“VWAP”) calculations. There will be a one- and two-minute VWAP for each of the first two contract months of HO and RB. The one-minute VWAP will be based on outright trades on CME Globex in the first and second contract months of HO and RB during the one-minute period from 3:14:00 to 3:15:00 p.m. ET, and the two-minute VWAP will be based on outright trades on CME Globex in the first and second contract months of the HO and RB futures contracts during the two-minute time period from 3:13:00 to 3:15:00 p.m. ET. These synthetic VWAPs are intended to be additional price references for NYMEX HO and RB at the close of the trading day.
Questions regarding this advisory may be directed to the following individuals:
Dan Brusstar, Senior Director, Energy Research 212.299.2604