• Listing of Climate Action Reserve (CAR) Futures and Option Contracts on CME Globex, the Trading Floor and CME ClearPort

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • SER-5151
      • Notice Date
      • 24 February 2010
      • Effective Date
      • 21 March 2010
    • On Sunday, March 21, 2010 for trade date Monday, March 22, 2010, the New York Mercantile Exchange, Inc. (“NYMEX” or “Exchange”) will list five (5) Climate Action Reserve (CAR) Futures contracts for trading on CME Globex and for submission for clearing through CME ClearPort.  Additionally, on Tuesday, March 23, 2010, the Exchange will launch Climate Action Reserve (CAR) Option contracts for trading on the NYMEX trading floor and for clearing through CME ClearPort.

      Clearing services for these contracts will be available through CME ClearPort, a set of flexible clearing services open to over the counter (OTC) market participants to substantially mitigate counterparty risk and provide capital efficiencies across asset classes. These contracts will be listed by NYMEX, and will be subject to NYMEX rules and regulations. 

      These Climate Action Reserve (CAR) futures and option on futures contracts have been developed based on consultations with the Climate Action Reserve, and represent an approved use of Climate Reserve TonnesTM (CRT) issued by Climate Action Reserve. Such consultation and approval does not imply an endorsement of these products by the Climate Action Reserve.

      Please find below the futures and option contracts specifications.

       

      I.        Climate Action Reserve (CAR) Futures

      Contract Unit

      The contract unit shall be one thousand (1,000) CRTs for a delivery made by transfer through the Climate Action Registry.

      Deliverable CRTs

      A.     For contracts without a specified vintage year, CRTs acceptable for delivery are those having a vintage 2009 or later.

      B.     For contracts with a specified vintage year, CRTs acceptable for delivery are those having a vintage corresponding to the specified vintage year.

      Termination of Trading

      Trading in the current delivery month shall cease on the last business day of the contract month.

      Minimum Price Fluctuations

      Prices shall be quoted in dollars and cents per CRT. The minimum price fluctuation shall be $0.01 per CRT ($10.00 per contract).

        

       

      The five (5) futures contracts, commodity codes, listed months, first listed contract month, and rule chapter are listed below:

      Contracts

      Clearing Code

      CME Globex Code

      Listed Months

      First Listed Contract Month

      Rule Chapter

      Climate Action Reserve (CAR) Futures-Non Vintage

      CR

      CR

      Six (6) consecutive quarterly and seven (7) December contracts

      June 2010

      917

      Climate Action Reserve  (CAR) Futures - Vintage 2009

      92

      92X

      Six (6) consecutive quarterly and five (5) December contracts

      June 2010

      917

      Climate Action Reserve (CAR) Futures - Vintage 2010

      93

      93X

      Six (6) consecutive quarterly and five (5) December contracts

      March 2011

      917

      Climate Action Reserve  (CAR) Futures - Vintage 2011

      94

      94X

      Six (6) consecutive quarterly and four (4) December contracts

      March 2012

      917

      Climate Action Reserve  (CAR) Futures - Vintage 2012

      95

      95X

      Six (6) consecutive quarterly and three (3) December

      March 2013

      917

       

      II.        Climate Action Reserve (CAR) Option

       

      Trading Unit

      A CAR option contract is a European-style option. A CAR put or call option contract traded on the Exchange represents an option to assume a short or long position in the underlying CAR futures contract traded on the Exchange.

      Expiration

      A CAR option contract listed on the Exchange shall expire at the close of trading three business days prior to the expiration of the underlying CAR futures contract.

      Strike Prices

      Ten strike prices in increments of $.50 per CRT above and below the at-the-money strike price. Strike price boundaries are adjusted according to futures price movements.

      The option contract, commodity codes, listed months, first listed contract month, and rule chapter are listed below:

      Contracts

      Code

      Listed Months

      First Listed Contract Month

      Rule Chapter

      Climate Action Reserve (CAR) Option

      CO

      Six (6) consecutive quarterly and seven (7) December contracts

      June 2010

      918

      III.        Fee Schedule

      The fees for these futures and option contracts which will be waived until May 31, 2010 are as follows:

       

      Full Name

      Member

      Non Member

      Climate Action Reserve (CAR) Futures

      $2.50

      $2.50

      Climate Action Reserve (CAR) Option

      $2.50

      $2.50

           

       Additional Fees

      Member

      Non Member

       Delivery Notice

      $1.00

      $1.00

       Exercise and Assignment

      $0.85

      $0.85

           

       Futures from Exercise and Assignment

      Member

      Non Member

      Climate Action Reserve (CAR) Futures

      $2.50

      $2.50

       

      Should you have any questions or require any further information, please contact Brad Leach at 212-299-2609 or Adila Mchich at 212-299-2270.