This notice is to inform NYMEX ACCESS® traders of the types of Brent spread trading that will be supported by the NYMEX ACCESS® system. There will be four spread types involving the Brent futures contract. They are Brent inter-month (calendar) spreads and 1-1 inter-commodity spreads involving Brent/WTI Crude (SCCL 1-1), Brent/Heating Oil (SCHO 1-1) and Brent/Unleaded Gasoline (SCHU 1-1).
Quoting and Trading Brent Futures Spreads on NYMEX ACCESS®
The following table illustrates the trading conventions for the Brent Futures Spreads on NYMEX ACCESS®:
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Spread |
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If you buy the spread, you buy and sell these legs of the spread |
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If you sell the spread, you sell and buy these legs of the spread |
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Calculation of Spread Differential Price |
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SC Inter-month (Calendar) Spread |
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Buy Front Month and Sell Back Month |
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Sell Front Month and Buy Back Month |
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Front Month Price minus Back Month Price |
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SCCL 1-1 |
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Buy CL and Sell SC |
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Sell CL and Buy SC |
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CL Price minus SC Price |
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SCHO 1-1* |
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Buy HO and Sell SC |
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Sell HO and Buy SC |
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(HO Price times 42) minus SC Price |
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SCHU 1-1* |
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Buy HU and Sell SC |
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Sell HU and Buy SC |
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(HU Price times 42) minus SC Price |
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* Important Note: Although NYMEX ACCESS® will label the Brent inter-commodity futures spreads involving HO and HU as SCHO 1-1 and SCHU 1-1, the trading screens that list these spreads will list the contract codes as HOSC 1-1 and HUSC 1-1. The listing of these spread codes in this order is temporarily necessary to generate correct implied markets related to these spreads. Please note that the order in which the commodity codes are listed, i.e., HOSC and HUSC, does not affect the leg that you buy and sell when you buy or sell the spread. The table above properly reflects the buy and sell legs when you buy and sell these spreads.
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