03/03/2006
Effective immediately, in NYMEX miNY Natural Gas only, a spread market or differential will be allowed between the NYMEX miNY natural gas futures and the standard natural gas futures contracts for EFM transactions. The Lead Market Makers (LMM) in the miNY natural gas are required to make a spread market of no more than four ticks or two cents wide on either side of the bid/offer between the miNY and standard contracts.
To execute an EFM, a customer must contact their NYMEX Clearing Member. It should be noted that EFMs can only be executed to close out an existing customer position. Please see amended NYMEX rule below.
NYMEX Rule 6.21 E
Exchange of NYMEX miNY™ futures contracts for, or in Connection with, NYMEX standard size futures contracts transactions (EFM)
(Italics refer to inserts)
(A) General Requirements. An exchange of futures for, or in connection with, mini futures (EFM) consists of two discrete, but related transactions; a purchase (sale) transaction in a NYMEX miNY and a sale (purchase) transaction in the related NYMEX standard size futures contract. At the time such transaction is effected, the buyer (seller) of the NYMEX miNY shall be the seller (buyer) of the related NYMEX standard futures contract in the ratio designated by the Board of Directors.
(B) Final Deadline for Transactions. An EFM involving an expiring NYMEX miNY futures contract month is permitted at any time up to and must be reported to the Exchange by the close of trading one business day preceding the expiration date of the miNY futures contracts.
(C) Contract Month and Quantity. An EFM transaction may only be effected for the same contract month in both of the applicable NYMEX futures contracts. The quantity of contracts to be exchanged in the EFM transaction must be consistent with the size ratio then in effect between the applicable NYMEX miNY futures contract listed for trading on the NYMEX ClearPort Trading platform and the standard size NYMEX futures contract listed for trading at NYMEX
(D) Transaction Price. An EFM transaction may only be transacted at the settlement price for the regular size NYMEX futures contract for the trading session in which the EFM transaction was reported to the Exchange; provided however, that an EFM transaction in the NYMEX miNY Natural Gas futures contract may be transacted at a spread price of up to two cents wide. For an EFM transaction in miNY Natural Gas, the settlement price of the standard futures contract will be shown in the NYMEX miNY side of the transaction with the price differential reflected in the standard futures contract price side of the transaction.
(E) Floor Reporting Requirements and Deadlines. A report of each EFM transaction must be given and notice thereof must be posted on the Floor of the Exchange. The report of an EFM transaction must be given on the Floor prior to the end of the trading session on the day that the agreement was made, or if such agreement was made after the close of trading, then during the trading session on the next business day.
(F) Clearing. EFM transactions shall be cleared through the Exchange in accordance with normal procedures, shall be clearly identified and marked in the manner provided by the Exchange, and shall be recorded by the Exchange and by the Clearing Members involved.