• Trading at Settlement and Matched Order Transactions

      • To
      • Members. Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • NYMEX & COMEX RA0909-4
      • Notice Date
      • 24 September 2009
      • Effective Date
      • 24 September 2009
    •  

      This Advisory Notice supersedes NYMEX & COMEX Market Regulation Advisory Notice RA0907-4 from September 1.  It is being reissued based on the upcoming delisting of COMEX Aluminum futures on September 28, 2009, and to correct inaccuracies concerning the trading venue for those cash-settled financial contracts eligible for Trading at Settlement (“TAS”). 

       

      Aluminum futures have been removed from the list of products eligible to be traded as Matched Order (“MO”) Transactions pursuant to the rule based on the upcoming delisting of the contract.  Additionally, the cash-settled financial contracts eligible for TAS are available for trading via open outcry but not on the CME Globex trading platform.  Accordingly, those contracts now appear under the list of pit-traded contracts eligible for TAS.     

       

      Effective September 14, 2009, NYMEX & COMEX adopted new Rule 524 (“Trading at Settlement (“TAS”) and Matched Order (“MO”) Transactions”) as a result of the harmonization of NYMEX and COMEX trade practice rules with the rules of CME and CBOT. 

       

      The commodities and contract months in which TAS and MO transactions may take place are set forth below, followed by the text of the rule.

       

      Trading at Settlement (“TAS”) Transactions

       

      TAS transactions may take place in the following futures contract months:

       

       

      Pit-Traded Contracts

       

      Light “Sweet” Crude Oil – spot (except on the last trading day), 2nd, 3rd and 7th months

      WTI Crude Oil Financial – spot, 2nd and 3rd months

      Brent Crude Oil Financial – spot, 2nd and 3rd months

      New York Harbor No. 2 Heating Oil – spot (except on the last trading day), 2nd and 3rd months

      Heating Oil Financial – spot, 2nd and 3rd months

      Natural Gas – spot (except on the last trading day), 2nd and 3rd months

      Natural Gas Financial – spot, 2nd and 3rd months

      Natural Gas Financial (Last Day) – spot, 2nd and 3rd months

      NY Harbor Gasoline Blendstock (RBOB) – spot (except on the last trading day), 2nd and 3rd months

      RBOB Gasoline Financial – spot, 2nd and 3rd months

       

      CME Globex Contracts

       

      Commodity

      Code on                                   Name & Contract Months                                   Cleared Product

      CME Globex

       

           CLT               Light “Sweet” Crude Oil                                                                  CL

                                spot (except on the last trading day), 2nd, 3rd and 7th months

           HOT               Heating Oil                                                                                      HO

                                spot (except on the last trading day, 2nd and 3rd months

           NGT               Natural Gas                                                                                      NG

                                spot (except on the last trading day), 2nd and 3rd months

           RBT               RBOB Gasoline                                                                                RB

                                spot (except on the last trading day), 2nd and 3rd months

           RET               REBCO                                                                                            RE

                                spot (except on the last trading day), 2nd and 3rd months

       

      Matched Orders (“MO”)

       

      MO transactions may take place in the following pit-traded futures contract months:

       

      Copper – spot and next four consecutive months

       

      Questions regarding this Advisory Notice may be directed to the following individuals in Market Regulation:

       

      Nancy Minett, Director, 212.299.2940

      Russell Cloughen, Associate Director, 212.299.2880

       

      Rule 524 (“Trading at Settlement (“TAS”) and Matched Order (“MO”) Transactions”)

       

       

      The Exchange shall determine the commodities, contract months and time periods during which TAS and MO transactions shall be permitted.

      524.A.   Trading at Settlement (“TAS”) Transactions

      The following shall govern TAS transactions:

      1.         TAS transactions executed in the pit must be made open and competitively pursuant to the requirements of Rule 521 during the hours designated for pit trading in the particular contract and must be identified as such on the member’s trading records.

      2.   TAS transactions on Globex may take place at any time the applicable contracts are available for trading on Globex.

      3.   TAS-eligible commodities and contract months may be executed as block trades pursuant to the requirements of Rule 526 except that TAS block trades may not be executed on the last day of trading in an expiring contract.

      4.         TAS transactions may be executed at the current day’s settlement price or at any valid price increment ten ticks higher or lower than the settlement price.

            524.B.   Matched Order (“MO”) Transactions

      The following shall govern MO transactions:

      1.   The price of the MO will be the settlement price for that contract.

      2.   Only Market on Close (“MOC”) orders are eligible to trade as an MO.  Members may execute an MOC order during an eligible MO time period as an MO unless specific instructions to the contrary are provided, and such instructions are denoted on the order.  Failure to enter specific instructions when placing the MOC order will forfeit a customer’s right to cancel the MOC, in whole or in part, if the order or any portion of the order has been previously executed.  An MOC order executed as an MO must be reported to the customer as an MO upon execution.  An order entered as an MO will be executed during the closing period as an MOC order if not previously executed as an MO or specifically designated to be executed only as an MO.  An order specifically designated for execution only as an MO must be designated as such at the time the order is placed.

      3.   Members must identify an MOC order executed as an MO on their trading record.