Notice to Members
Notice No. 331 1/12/2000
Proposed Rule To Allow Strip Trading In Propane
The NYMEX Board of Directors has voted to allow strip trading in the Propane Contract. The proposed amendment to Rule 6.08D must be reviewed by the Commodity Futures Trading Commission (CFTC) prior to implementation. The proposed rule amendment is attached below. This rule amendment will become effective after CFTC approval is received. The Membership will be notified when strip trading will begin. PROPOSED RULE AMENDMENT (Underlining represents an addition, and strikethrough a deletion) NYMEX Floor Rules Rule 6.08D. STRIP TRANSACTIONS Definition: A strip transaction shall consist of either the simultaneous purchase or sale of an equal number of contracts in each of two or more consecutive contract months for crude oil futures, natural gas futures, heating oil futures, gasoline futures, propane futures, or electricity futures for a single account that is quoted and traded at a single price. Floor Members executing strip transactions shall properly record them in writing so as to permit the identification of the strip transactions and the parties thereto. All strip transactions for futures contracts for crude oil, natural gas, heating oil, gasoline, propane, or electricity on the Exchange trading floor must be made by open outcry in the trading rings for crude oil, natural gas, heating oil, gasoline, propane, or electricity, as applicable. All strip transactions must be in line with prevailing contract prices for strip transactions and the prices of futures contracts for crude oil, natural gas, heating oil, gasoline, propane, or electricity, as applicable, comprising the strip transaction shall be within the permissible price limits of the contract months traded. The seller in each strip transaction must report on the hard copy ply of his or her trading card the price of the strip transaction to the Exchange. The Exchange shall then assign the prices for each of the crude oil, natural gas, heating oil, gasoline, propane, or electricity futures contracts months comprising the strip transaction pursuant to a methodology as established by the Exchange. Except as provided in Rule 6.08C(C), strip transactions shall not set off stops in any contract.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com