Notice to Members
Notice No. 48 01/26/2006
Fee Holiday to End for Natural Gas and Crude Oil Daily Settlement Derivatives
The New York Mercantile Exchange, Inc., has announced that the fee holiday for the economic derivative options based on the daily settlements of natural gas and crude oil will end, effective February 1, 2006. For DSD vanilla options, the fees to be charged will be the equivalent of $5 per "usual market contract size." As the usual market contract size for natural gas products is 10,000 (mmBTU), the fee will be $0.0005 per filled unit for the natural gas DSD (10,000 * $0.0005 = $5). Similarly, as the usual market contract size for crude oil products is 1,000 (barrels), the fee will be $0.005 per filled unit for the crude oil DSD (1,000 * $0.005 = $5). In no case can the fee for a vanilla option exceed 10% of the maximum potential gain or loss for the filled order. For DSD digital options, since the payout will always be $1 per unit, and not based on the difference from settlement, the fee will be equal to 1.5% of the maximum potential gain, capped at 10% of the maximum potential loss.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com