November 4, 2009

Topics include:

Two New NYISO Zone F Electricity Swap Futures Contracts Coming Soon
Listing New Petroleum Futures Contracts
CME Group Wins Awards in Energy
NYMEX Foundation Annual Fundraiser and Industry Party
Seminar: Physical Crude Oil and Products Trading
Seminar: Physical Natural Gas Trading
Energy Update - Archive



Two New NYISO Zone F Electricity Swap Futures Contracts Coming Soon

Beginning on Sunday, November 8, 2009 for trade date Monday, November 9, the Exchange will launch two new NYISO Zone F, peak and off-peak, electricity swap futures contracts for trading on the NYMEX trading floor and for submission for clearing through CME ClearPort. The contracts are listed with NYMEX, and subject to, the rules and regulations of NYMEX and CME.

These new futures contracts will be financially settled. The first listed month will be the December 2009 contract month. Monthly contracts will list current year plus the next five calendar years, consecutively. A new calendar year will be added following the termination of trading in the December contract of the current year.

The Exchange will allow Exchange of Futures for Physical (EFP) and Exchange of Futures for Risk (EFR), collectively referred to as Exchange For Related Position (EFRP) transactions to be submitted through CME ClearPort. EFRP transactions in these futures contracts will be governed by the provisions of Exchange Rule 538.

Contract specifications:

Contract

Code

Chapter

NYISO Zone F 5 MW Peak Calendar-Month Day-Ahead LBMP Swap Futures

4L

907

NYISO Zone F 5 MW Off-Peak Calendar-Month Day-Ahead LBMP Swap Futures

4M

908


Peak Days and Hours
Peak day shall mean a Monday through Friday, excluding North American Electric Reliability Corporation holidays from Hour Ending (HE) 0800 Eastern Prevailing Time (EPT) through HE 2300 EPT.

Off-Peak Days and Hours
Off-Peak shall mean Monday through Friday Hour Ending (HE) 0100-0700 and 2400 Eastern Prevailing Time (EPT) and Saturday through Sunday HE 0100-2400 EPT including North American Electric Reliability Corporation holidays.

Contract Quantity
Peak Contract Unit: 80 Megawatt hours (MWh) (5 MW per peak hour). The monthly transaction size is restricted to whole number multiples of the number of peak days in the contract month.

Off-Peak Contract Unit: 5 MWh (5 MW per off-peak hour). The monthly transaction size is restricted to the whole number multiples of the number of off-peak hours in the contract month.

Tick Size
The minimum price fluctuation shall be $0.05 per MWh.

Termination of Trading
Trading shall cease the last business day of the contract month.

Fee Schedule

 

Member

Non-Member

COMEX Blended

CPC (On-Peak)

$.35

$.40

NA

Floor (On-Peak)

$.35

$.40

$.37

Cash Settlement (On-Peak)

$.40

$.40

NA

 

 

 

 

CPC (Off-Peak)

$.02

$.03

NA

Floor (Off-Peak)

$.02

$.03

$.03

Cash Settlement (Off-Peak)

$.02

$.03

NA

EFS, EFP, Spreads, Strips and ex Pit trades are available at standard member and nonmember rates – no surcharges apply. Block fees apply at standard levels.


The chapters setting forth the terms and conditions of these new electricity swap futures contracts will be available on the Exchange’s online rulebook. Margins and position limits will be announced in separate notices.

Should you have any questions or require any further information, please contact Michael O’Neill at (212) 299-2348 or the Marketing hotline (212) 299-2301.

Listing New Petroleum Futures Contracts

Please be advised that the Exchange will list two new financially settled petroleum futures contracts for trading on the New York trading floor and for submission for clearing on CME ClearPort. The contracts are listed with NYMEX, and are subject to, the rules and regulations of NYMEX and Chicago Mercantile Exchange Inc.

The contracts will be listed on CME ClearPort beginning at 6:00 p.m. on Sunday, November 8, 2009 for trade date Monday, November 09, 2009 and on the trading floor beginning at 9:00 a.m. on Monday, November 09.

Contract specifications:

Contract

Code

Chapter

SME Biodiesel (Argus) FOB Rotterdam Swap Futures

24

504

PME Biodiesel (Argus) FOB Rotterdam Swap Futures

25

505


Trading Hours (New York Time/ET)

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

Open Outcry: Monday – Friday 9:00 a.m. – 2:30 p.m. (8:00 a.m. – 1:30 p.m. CT)

The two products will be financially settled. The first listed month for all products will be the December 2009 contract month. The contracts will be listed for 24 consecutive contract months.

For further information, please call the Energy Hotline at (212) 299-2301.

CME Group Wins Awards in Energy

CME Group has been granted two energy innovation awards by FOW, a leading global derivatives publication.

For innovation in product design:

For innovation in customer service:


NYMEX Foundation Annual Fundraiser and Industry Party

The NYMEX Foundation's annual fundraiser for children in need will be held on Thursday, November 19 from 5:00 p.m. to 8:30 p.m. on the NYMEX trading floor! Tickets are $150.00, and the event will feature a cocktail party, live auction hosted by Liz Claman of Fox News, and concert performance by Felix Cavaliere’s Rascals.

Separate from the live auction, the online auction will run from Monday, November 2 through Monday, November 23. All funds raised through the live and online auctions benefit children’s causes. In 2008, the NYMEX Foundation contributed more than $1.6 million to over 151 organizations. We hope you will join us!

Seminar: Physical Crude Oil and Products Trading

Date: 11/04/09-11/05/09

Place: NYMEX World Headquarters
Seminar RoomNew York
World Financial Center
One North End Avenue
New York, NY 10282-1101

Time: 8:00am - 4:00pm ET
Speaker: Mr. Dominick Chirichella Sponsoring
Firm: Energy Management Institute
Cost: $1895

This highly interactive and intensive two day, physical crude oil & products trading course will provide the attendees with a comprehensive understanding and knowledge base of the US and international physical oil trading business from the perspective of both the trader and the supply analyst. EMI's unique program delves into the details of the physical market on day one including discussions on the fundamentals, major crude oil & products markets, characteristics of the markets, operations and logistics, freight trading and distinct differences between the physical & financial markets. On day two the program focuses on making money. The course attendees will be exposed to arbitrage (spread) trading, as well as outright (long/short) trading opportunities. EMI will present approaches that work for physical trading, as well as valuing and relating both physical crude oil & products back to the refinery gate. Finally, the program will end day with a very exiting simulated trading exercise.

What you will learn:

Crude oil and products supply and demand
Crude oil evaluation and selection
Oil refining and products
Discussion of various pricing mechanisms
Physical oil markets and pricing
Operations & Logistics
Freight Trading
Comparison of physical & financial trading
Arbitrage/Spread trading
Refinery trading & supply
Physical outright (long/short) trading
Approach to trading physicals
Simulated trading session

How participants will benefit:

Learn about supply and demand for crude oil and products
Understand the principles of crude oil evaluation and selection
Develop your knowledge of oil refining and products
Explore physical oil markets, pricing formation, shipping, operations and contracts
Gain knowledge about futures, swaps, options and Over The Counter markets
Become familiar with trading techniques, terminology, hedging and physical trading
Develop expertise in management of market exposure and price risk
Improve your negotiation skills
Understand the commercial aspects of the downstream oil business

 To register, please Click Here

Seminar: Physical Natural Gas Trading

Date: 11/11/09-11/12/09

Place: NYMEX World Headquarters
Seminar RoomNew York
World Financial Center
One North End Avenue
New York, NY 10282-1101

Time: 8:00am - 4:00pm ET
Speaker: Mr. Jackson Mueller Sponsoring
Firm: Energy Management Institute
Cost: $1895

Understand the U.S. physical natural gas market from the perspective of the supplier, buyer and analyst.

This highly interactive and intensive two-day physical natural gas trading class will provide the attendees with a comprehensive understanding and knowledge base of how gas is traded physically amongst major participants. EMI's unique program delves into the details of the physical markets, operations and logistics, and distinct difference between physical and financial markets. Course attendees will be exposed to arbitrage (spread) trading as well as outright (long/short) trading opportunities. EMI will present approaches that work for physical trading as well as valuing and relating natural gas back to the wellhead. Finally the program will end with a very exciting, simulated trading exercise, showing the value of the CME Group as a remarkable and powerful tool to manage and create transactions.

What you will learn:

Learn about supply and demand for natural gas in various geographic areas of the U.S.
Explore physical gas markets, pricing information, operations, and contracts
Gain knowledge about futures, swaps, options, and Over the Counter markets
Become familiar with trading techniques, terminology, hedging, and physical trades
Develop expertise in management of market exposure and price risk
Improve your negotiation skills

Subjects covered include:

Natural gas supply and demand
Cost of natural gas from the wellhead to the burner tip
Discussion of various pricing mechanisms
Physical gas markets and pricing
Operations and logistics
Comparison of physical and financial trading
Arbitrage/spread trading
Physical outright (long/short) trading
Approach to trading physicals
Simulated trading session

 To register, please Click Here