Notice 553
November 7, 2008
Expansion of Listed Months and Rule Amendments for Regional Greenhouse
Gas Initiative (RGGI) CO2 Allowance Futures and Option Contracts
Please be advised that the Exchange is expanding its listed schedule for
its Regional Greenhouse Gas Initiative (RGGI) CO2 Allowance Futures and
Option contracts. Beginning on Sunday evening, November 23, 2008 (for
trade date Monday, November 24, 2008), the Exchange will list the months
of January 2009 through December 2011 for its RGGI CO2 Allowance Futures
contract. Further, the Exchange will list the corresponding months for
its RGGI Option contracts on trade date Tuesday, November 25, 2008.
Effective on Monday, November 24, 2008, the rules concerning the termination
of trading and Option expiration for the RGGI CO2 Allowance Futures and
Option contracts will be amended. The Product Placement and Delivery procedures
rules will also be amended to reflect the change in the expiration of
the Futures contract.
The rule amendments are attached below.
Bold italics indicates insertion, and strikethrough
indicates deletion.
873. 07 Termination of Trading
Trading in the current delivery month shall cease at termination of the
third business day prior to the first last
business day of the contract month.
873. 08 Product Placement
(1) Certification:
For purposes of Rule 9.19, the Seller and Buyer shall have fulfilled its
respective contractual obligation on a maturing contract only if by 12:00
pm on the 10th business day prior to the first last
business day of the delivery month, such Seller and Buyer have received
RGGI CO2 Allowance Tracking System account certification from its customer,
in the form prescribed by the Exchange stating that:
(a) If a buyer, the Buyer’s Customer has an account with RGGI CO2
Allowance Tracking System; or
(b) If a seller, the Seller’ Customer has an account with RGGI CO2
Allowance Tracking System.
The receipt of such certification shall not relieve the Seller or Buyer
or their respective Customers of any obligations under any Rule other
than Rule 9.19.
873. 09 Delivery Procedures
(A) RESPONSIBILITIES OF CLEARING MEMBERS HAVING OPEN LONG POSITIONS
(1) NOTICE OF INTENTION TO ACCEPT
By 4:30 p.m. on the second business day prior to first
business day of an expiring delivery month, a Buyer having an open position
shall file with the Exchange a properly completed and signed Notice of
Intention to Accept. The Notice of Intention to Accept shall be in the
form prescribed by the Exchange and shall include: name of the Buyer’s
Customer, number of contracts to be accepted, RGGI CO2 Allowance Tracking
System account number; Name, phone number and e-mail address of the authorized
account representative for that RGGI CO2 Allowance Tracking System account,
and any additional information as may be required by the Exchange;
(B) RESPONSIBILITIES OF CLEARING MEMBERS HAVING OPEN SHORT POSITIONS
(1) NOTICE OF INTENTION TO DELIVER
By 4:30 p.m. on the second business day prior to first
business day of an expiring delivery month, a Seller having an open short
position shall file with the Exchange a properly completed and signed
Notice of Intention to Deliver. The Notice of Intention to Deliver shall
be in the form prescribed by the Exchange and shall include: name of the
Seller's Customer, number of contracts to be delivered, RGGI CO2 Allowance
Tracking System Account Number, name, phone number and e-mail address
of the authorized account representative for that RGGI CO2 Allowance Tracking
System account, Any additional information as may be required by the Exchange.
(D) Notice Day
(1) The Clearing House shall allocate Notices of Intention to Deliver
and Notices of
Intention to Accept by matching size of positions, to the extent possible.
(2) The Clearing House shall provide Tender Allocation Notices to the
respective
Clearing Members on the second last
business day prior to the first business day the delivery
month.
(3) The day the Tender Allocation Notices are provided to the Clearing
Members
shall be referred to as "Notice Day". Tender Allocation Notices
are not transferable.
873. 10 Delivery Period
Delivery shall take place on the first third
business day of the delivery month.
Rule 874.01 Expiration of Regional Greenhouse Gas Initiative
(RGGI) CO2 Allowance Option Contract
A Regional Greenhouse Gas Initiative (RGGI) CO2 Allowance Option Contract
shall expire on the close of trading on the 15th day of the
contract month. If the 15th day is not a business day, the Regional Greenhouse
Gas Initiative (RGGI) CO2 Allowance Option Contract shall expire on the
business day prior to the 15th. the third business
day immediately preceding the expiration of the underlying Regional Greenhouse
Gas Initiative (RGGI) CO2 Allowance futures contract.
Should you have any questions or require any further information, please
contact ExchangeInformation@cmegroup.com.
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