• NYMEX Brent Expiry Calendar Modification, Cash Adjustment Process, and Dry Run Date

      • To
      • Clearing Member Firms; Back Office Managers
      • From
      • CME Clearing
      • #
      • 13-527
      • Notice Date
      • 14 November 2013
      • Effective Date
      • 08 December 2013
    • Effective Sunday, December 8, 2013 for trade date Monday, December 9, 2013, and pending all relevant CFTC regulatory review periods, please be advised that the New York Mercantile Exchange, Inc. (EXCHANGE) will amend the last trading day for the following products currently listed on CME Globex, Open Outcry and available for submission for clearing on CME ClearPort.
      The New York Mercantile Exchange, Inc. (“NYMEX” or “Exchange”) has been advised that ICE Futures Europe has confirmed changes to the specifications of its Brent crude oil futures contract. The most impactful change establishes a month-ahead expiry calendar for the futures contract. Since NYMEX references to the ICE contract for settling NYMEX Brent crude oil futures and options, NYMEX will make conforming amendments to all related NYMEX contracts listed on its markets, with effect from Friday, December 6, 2013 (all payments will be processed on Monday December 9 2013).
      Amendments to NYMEX contract specifications vary depending on the particular NYMEX Brent contract. Amendments may include a revision of the contract’s last trading day, a revision of the nature of the underlying reference price, or both. These amendments will likely result in a change to the valuation of each position. Pursuant to criteria outlined below, the Exchange intends to determine the impact on contract valuation on Friday, December 6, 2013. Holders of long and short positions will be required to make or take additional payments in order to neutralize the economic impact of the contract amendments. These additional payments will be processed on Monday, December 9, 2013
      Set out in the attached advisory notice are contract amendments on a product by product basis.

      For the full text of this advisory...