Notice to Members
Notice No. 37 02/02/2004
Reminder on Crack Spread Bids, Offers and Trades
NYMEX Rule 6.05(A) generally requires that all futures and option transactions at the Exchange be executed "openly and competitively by open outcry in the appropriate trading ring... " (emphasis added.) More specifically, with respect to crack spreads, NYMEX Rule 6.07(A)(i) requires that all crack spread transactions "shall be traded in the appropriate designated area of the Exchange." The NYMEX Floor Committee is issuing this periodic reminder to remind NYMEX Floor Members that all crack spreads (as well as heating oil to gasoline transactions) can only be bid, offered and traded in the designated area for crack spread trading. These rule provisions will be strictly enforced by the Floor Committee. Floor Committee members will not honor or otherwise protect any bids or offers for crack spreads or for heat-to-gas unless such bids and offers are properly represented in the Crack Spread area.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com