• NYMEX will NOT apply EPA Waiver to RBOB Gasoline Futures Contract for October 2016 Deliveries

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-7752R
      • Notice Date
      • 27 September 2016
      • Effective Date
      • 27 September 2016
    • (This SER supersedes SER 7752 dated September 22, 2016.)

      Effective immediately, the EPA waiver issued on September 16, 2016 will not apply to deliveries against the October RBOB Gasoline Futures contract (Rulebook Chapter 191; Commodity Code:  RB) (the “Contract”).  The Exchange emphasizes that only RBOB gasoline (and not conventional gasoline or related blendstocks) is deliverable under the Contract.

      The United States Environmental Protection Agency (“EPA”) issued a waiver on September 16, 2016 in response to the pipeline leak that occurred on the Colonial Pipeline in Alabama.  The EPA waiver allows for delivery of conventional gasoline and related blendstocks in New Jersey.  The Exchange issued an SER in consultation with market participants on September 22, 2016 to inform the marketplace of the EPA’s action and its impact on the Contract delivery requirements – namely, the acceptability of conventional gasoline as good delivery.

      The Exchange has been advised that the EPA waiver will not be extended to include New York and Connecticut.  Consequently, the Exchange has determined that uncertainty associated with the implementation of the EPA waiver could potentially lead to unintended market disruption. 

      As a result, effective immediately and until expiration of the EPA waiver, pursuant to NYMEX Rule 701 (“Declaration of Force Majeure”), NYMEX is hereby declaring that the EPA waiver will not apply to deliveries against the October RBOB Contract.

      For additional information, please contact:

      Energy Research

      Daniel Brusstar     Daniel.Brusstar@cmegroup.com       212.299.2604

      Please click here for PDF of SER-7752R.