02/25/2008
Beginning on Sunday evening, March 16, 2008 (for trade date March 17, 2008), the New York Mercantile Exchange, Inc. will list for trading and clearing the emission allowance futures and options contracts noted below. These new NYMEX contracts are the first to be listed in connection with the recently-announced Green Exchange initiative; we anticipate announcing other new environmental products shortly. Also, effective March 17, 2008, as described below certain NYMEX contracts will be migrated from the NYMEX ClearPort® trading platform to the CME Globex® electronic trading platform.
A. Carbon-Based Contracts
1. European Union Allowance (EUA) Futures Contract
The European Union Allowance (EUA) Futures Contract (trading symbol RC) is physically delivered at the UK Emissions Trading Registry (UK Registry). The minimum tick size is €0.01 per metric ton of CO2. Contract size is 1,000 metric tons of CO2, corresponding to 1,000 EUA units. This contract is priced in Euros.
The EUA Futures Contract will be listed for trading on the CME Globex electronic trading platform. Additionally, off-exchange transactions can be submitted for clearing via the NYMEX ClearPort clearing platform.
2. European Union Allowance (EUA) Option Contract
The EUA Option Contract (trading symbol AV) is a European-Style option that exercises into the underlying EUA Futures Contract. The option expires three (3) business days prior to the expiration of the underlying EUA Futures Contract. There will be ten (10) strike prices in increments of €0.50 per metric ton of CO2 above and below the at-the-money strike price. This contract is priced in Euros.
The EUA Option Contract will be listed for trading on the NYMEX Trading Floor for clearing at NYMEX. Additionally, off-exchange transactions can be submitted for clearing via the NYMEX ClearPort clearing platform.
3. Certified Emission Reduction (CER) Futures Contract
The Certified Emission Reduction (CER) Futures Contract (trading symbol VA) is physically delivered at the UK Registry. The minimum tick size is €0.01 per metric ton of CO2 equivalents. Contract size is 1,000 metric tons of CO2 equivalents, corresponding to 1,000 CER units. This contract is priced in Euros.
The CER Futures Contract will be listed for trading on the CME Globex electronic trading platform. Additionally, off-exchange transactions can be submitted for clearing via the NYMEX ClearPort clearing platform.
B. Nitrogen Oxides (NOX) Emission Allowance Contracts
1. Seasonal NOx Emission Allowance Futures Contracts
NYMEX will list four (4) Seasonal NOx Emission Allowance Futures Contracts (Seasonal NOx Futures Contracts), one for each vintage year from 2009 through 2012. Each Seasonal NOx Futures Contract is physically delivered at the U.S. Environmental Protection Agency (EPA) NOx Allowance Tracking System (NATS), and relates to the ozone season from May 1 through September 30. The minimum tick size is $25.00 per ton. These contracts are priced in US dollars.
Also, effective March 17, 2008, the existing NYMEX NOx Emission Allowance Futures Contract for the current vintage year, currently listed on the NYMEX ClearPort trading platform, will be migrated to the CME Globex electronic trading platform.
The following summarizes the Seasonal NOx Futures Contracts:
Contract Name Symbol Contract Size
Seasonal NOx Emission Allowance – Current Vintage – Futures RN 10 Tons
Seasonal NOx Emission Allowance – Vintage 2009 – Futures YI 10 Tons
Seasonal NOx Emission Allowance – Vintage 2010 – Futures YJ 10 Tons
Seasonal NOx Emission Allowance – Vintage 2011 – Futures YN 10 Tons
Seasonal NOx Emission Allowance – Vintage 2012 – Futures YM 10 Tons
The Seasonal NOx Futures Contracts will be listed for trading on the CME Globex electronic trading platform. Additionally, off-exchange transactions can be submitted for clearing via the NYMEX ClearPort clearing platform.
2. Annual NOx Emission Allowance Futures Contracts
NYMEX will also list four (4) Annual NOx Emission Allowance Futures Contracts (Annual NOx Futures Contracts), one for each vintage year from 2009 through 2012. Each Annual NOx Futures Contract is physically delivered at the EPA NATS. The minimum tick size is $25.00 per ton. These contracts are priced in US dollars.
The following summarizes the Annual NOx Futures Contracts:
Contract Name Symbol Contract Size
Annual NOx Emission Allowance – Vintage 2009 – Futures WW 10 Tons
Annual NOx Emission Allowance – Vintage 2010 – Futures YP 10 Tons
Annual NOx Emission Allowance – Vintage 2011 – Futures YQ 10 Tons
Annual NOx Emission Allowance – Vintage 2012 – Futures YR 10 Tons
The Annual NOx Futures Contracts will be listed for trading on the CME Globex electronic trading platform. Additionally, off-exchange transactions can be submitted for clearing via the NYMEX ClearPort clearing platform.
C. Sulfur Dioxide (SO2) Emission Allowance Contracts
1. SO2 Emission Allowance Futures Contract
Effective March 17, 2008, the existing NYMEX SO2 Emission Allowance Futures Contract (trading symbol RS), currently listed on the NYMEX ClearPort® trading platform, will be migrated to the CME Globex electronic trading platform. Additionally, off-exchange transactions can be submitted for clearing via the NYMEX ClearPort clearing platform.
2. SO2 Emission Allowance Option Contract
The SO2 Emission Allowance Option Contract (trading symbol AS) is a European-Style option that exercises into the underlying existing NYMEX SO2 Emission Allowance Futures Contract. The option expires on the fifteenth (15th) business day of the contract month. There will be five (5) strike prices in increments of $5.00 per ton above and below the at-the-money strike price. This contract is priced in US dollars.
The SO2 Emission Allowance Option Contract will be listed for trading on the NYMEX Trading Floor. Additionally, off-exchange transactions can be submitted for clearing via the NYMEX ClearPort clearing platform.