• Amendments to NYMEX Rules 9A.27 and 9A.27A to Establish Hard Expiration Position Limits for Certain Natural Gas Financially-Settled Contracts

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • SER-4888
      • Notice Date
      • 05 June 2009
      • Effective Date
      • 05 June 2009
    • The New York Mercantile Exchange, Inc. is amending Rules 9A.27, Expiration Month Position Limit, and 9A.27A, Expiration Position Accountability Levels.  Effective for the October 2009 expiration, these amendments will establish hard expiration position limits for the following natural gas financially-settled contracts:

       

                  Henry Hub Penultimate Financial Futures Contract                           HP

                  Natural Gas Look-Alike Option                                                      LN

                  Henry Hub Natural Gas Penultimate Swap Futures Contract            NP

                  NYMEX Natural Gas miNY Futures Contract                                QG

                  Henry Hub Financial Last Day Futures Contract                              HH

                  Henry Hub Swap Futures Contract                                                 NN

                  Henry Hub Financial Last Day Option Contract                               E7

       

      The amendments are being implemented in response to a Commodity Futures Trading Commission (“CFTC”) rulemaking, anticipated to be in force by September 2009 that will require exempt commercial markets to establish hard position limits for significant price discovery contracts (“SPDCs”).  As such, these amendments are being implemented to establish hard expiration position limits for the above-cited natural gas financially-settled contracts similar to those required to be established for SPDCs.  In conjunction with the implementation of the CFTC’s final rulemaking, the amendments, reflected in Chapter 9A, Appendix A (attached) will, as previously stated, be made effective in conjunction with the October 2009 expiration of the natural gas financially-settled contracts. 

       

      Questions regarding these amendments can be directed to Anthony V. Densieski, Director, Market Surveillance, at 212.299.2881, or Chris Reinhardt, Supervisor, Market Surveillance at 212.299.2884.

       

       

      Attachment
      NOTIFICATION OF AMENDMENTS TO NYMEX RULES 9A.27 and 9A.27A

      (bold/underline indicates additions; strikethrough indicates deletions)

       

      Contract Name

      Rule Chap-ter

      Commodity Code

      All Month Accountability Level

      Any One Month Accountability Level

      Expiration Month Limit

      Expiration Accountability Level-Penultimate and Metals Contracts

      Expiration Accountability Level Last Day Contract

      Report-ing Level

      Aggre-gate Into (1)

      Aggre-gate Into (2)

      Rule 9A.26

      Rule 9A.26

      Rule 9A.27

       

       

      Rule 9A.27A

      Rule 9A.27A

      Rule 9A.34

      Natural Gas

       

       

       

       

       

       

       

       

       

       

      United Kingdom

       

       

       

       

       

       

       

       

       

       

       

      USA

       

       

       

       

       

       

       

       

       

       

       

      Henry Hub Penultimate Financial Futures Contract

      824

      HP

      12,000

      12,000

      1,000

      1,000

      100

      HP

      Natural Gas Look-Alike Option

      560

      LN

      12,000

      12,000

      1,000

      1,000

      100

      HP

       

      Henry Hub Natural Gas Penultimate Swap Futures Contract

      529

      NP

      12,000

      12,000

      1,000

      1,000

      100

      HP

       

      NYMEX Natural Gas miNY Futures Contract

      402

      QG

      12,000

      12,000

      1,000

      1,000

      175

      HP

       

      Henry Hub Financial Last Day Futures Contract

      823

      HH

      12,000

      12,000

      1,000

      -/1,000

      100

      HH

       

      Henry Hub Swap Futures Contract

      508

      NN

      12,000

      12,000

      1,000

      -/1,000

      175

      HH

       

      Henry Hub Financial Last Day Option Contract

       

       

       

      375

       

       

       

      E7

       

       

       

      12,000

       

       

       

      12,000

      1,000

      /1,000

       

       

       

      100

       

       

       

      HH