• Revisions to NYMEX Product Chapters in Connection with the NYMEX Rulebook Harmonization Project

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • SER-6648
      • Notice Date
      • 30 April 2013
      • Effective Date
      • 30 April 2013
    • Pending all relevant regulatory review periods, New York Mercantile Exchange, Inc. (“NYMEX” or the “Exchange”) will adopt a series of revisions to its product chapters beginning April 30, 2013.
      Revisions to the following physically-delivered Natural Gas Liquids futures product chapters will become effective on April 30, 2013:
      ·         Chapter 241 – Conway Physical Propane In-Well (OPIS) Futures
      ·         Chapter 242 – Mont Belvieu Spot Ethylene In-Well (PCW) Futures
      ·         Chapter 364 – Mont Belvieu Physical Non-LDH Propane (OPIS) Futures
      ·         Chapter 365 – Mont Belvieu Physical LDH Propane (OPIS) Futures
      ·         Chapter 366 – Mont Belvieu Physical Normal Butane (OPIS) Futures
      ·         Chapter 367 – Mont Belvieu Physical Natural Gasoline (OPIS) Futures
      ·         Chapter 368 – Mont Belvieu Physical Iso-Butane (OPS) Futures
      ·         Chapter 369 – Mont Belvieu Physical Ethane (OPIS) Futures
      Additionally, revisions to the following physically-delivered product chapters will become effective on May 14, 2013:
      ·         Chapter 260 – Central Appalachian Coal Futures
      ·         Chapter 506 – Gulf Coast Sour Crude Oil Futures
      ·         Chapter 1108 – Western Canadian Select (WCS) Crude Oil Futures
      Revisions to these product chapters are being adopted to ensure that the Exchange’s rules remain in compliance with CFTC Designated Contract Market (“DCM”) Core Principle 7 (“Availability of General Information”), which requires that DCMs make available to the public accurate information concerning the contract market’s rules and regulations, contracts and operations. In connection with CFTC Core Principle 7, the Exchange launched a Rulebook Harmonization Project with the goal of eliminating old, erroneous and obsolete language, ensuring the accuracy of all listed numerical values (e.g, trading units, tick sizes, etc.) and harmonizing the language and structure of the NYMEX product chapters with the product chapters of Chicago Mercantile Exchange Inc. (“CME”) and Board of Trade of the City of Chicago, Inc. (“CBOT”) to the best extent possible. This exercise was already completed for the CBOT product chapters in 2008, in connection with the CME/CBOT merger, and a similar review was recently completed for the CME product chapters. Revisions to additional NYMEX and Commodity Exchange, Inc. (“COMEX”) product chapters will be forthcoming later this year.
      The majority of the revisions are stylistic in nature. The more substantive revisions include the following:
      • Clarified and, in certain instances, corrected references to clearing member and position holder
      • Inserted boilerplate references to position limits and accountability levels
      • Removed references to disciplinary and arbitration procedures (already covered in Exchange Chapters 4 and 6)
      • Removed references to Force Majeure (already covered in Exchange Chapter 7B)
      • Removed references to Delivery/Advisory Committee (obsolete)
      • Aligned language relating to delivery margins with current Exchange rules and practices
      • In certain chapters, expanded the EFRP transaction period, for liquidation purposes only, through 3:30 p.m. on expiration day
      • In Chapters 242 and 365, reflected a change of ownership of the LDH facility in Mont Belvieu, Texas
      • In Chapter 260, removed language pertaining to spread trading (obsolete)
      • In Chapter 506, harmonized “Termination of Trading” section, pertaining to liquidation by mean of EFRP, with the language in the Light Sweet Crude Oil futures product chapter and added language pertaining to the timing of payment (harmonized with the Light Sweet Crude Oil futures product chapter)
      • In Chapter 1108, corrected the timeliness in the “Delivery Procedures” section, such that deadlines for Notice of Intention to Accept and Deliver and Delivery instructions were moved up by 30 minutes,and added previously omitted section relating to payment instructions
      To view the changes to the product chapters in their entirety, please click on the link listed below and reference filing numbers 13-102 and 13-162:
      If you have any questions concerning this matter, please contact any one of the following individuals:
      Nadine Brown, Market Regulation, Nadine.Brown@cmegroup.com, 212.299.2223
      Dan Brusstar, Research & Product Development, Daniel.Brusstar@cmegroup.com, 212.299.2604
      Brad Leach, Research & Product Development, Bradford.Leach@cmegroup.com, 212.299.2609
      For media inquiries concerning this Special Executive Report, please contact CME Group Corporate Communications at 312.930.3434 or news@cmegroup.com.