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Listing of Three Tanker Freight Average Price Options
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- To
- Members, Member Firms and Market Users
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- From
- Market Regulation Department
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- #
- SER-5475
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- Notice Date
- 17 November 2010
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- Effective Date
- 05 December 2010
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Beginning on Sunday, December 5, 2010, for trade date Monday, December 6, 2010, the New York Mercantile Exchange, Inc. (NYMEX) will list for trading on the NYMEX trading floor and for clearing through CME ClearPort three new tanker freight average price options, as described below.
The option contracts will be listed with NYMEX, and subject to the rules and regulations of NYMEX and Chicago Mercantile Exchange Inc.
The specifications of the option contracts are provided below.
Name
Freight Route TC2 (Baltic) Average Price Option
Freight Route TC5 (Platts) Average Price Option
Freight Route TD3 (Baltic) Average Price Option
Commodity Code
TCW
TCF
TDT
Rule Chapter
947
948
949
Underlying Futures
TM
TH
TL
Option Classification
European Style Option (Exercise on expiration day only)
Contract Size
1,000 metric tons
Quotation
US $ and cents per metric ton
Minimum Price Fluctuation
US $ 0.0001 per metric ton
Value per Tick
US $ 0.10
Expiration Date
The last UK business day of the month
First Listed Contract Month
January 2011
Listed Months
Monthly contracts for the current calendar year plus the next calendar year
Strike Price Intervals
US $ 0.10
Settlement Type
Financial
Name
Freight Route TC2 (Baltic) Average Price Option
Freight Route TC5 (Platts) Average Price Option
Freight Route TD3 (Baltic) Average Price Option
Trading Unit
Average of daily settlement prices published by Baltic Exchange, quoted in percent of the Worldscale flat rate, multiplied by the prevailing Worldscale flat rate, measured in US $ per metric ton
Average of daily settlement prices published by Platts, quoted in percent of the Worldscale flat rate, multiplied by the prevailing Worldscale flat rate, measured in US $ per metric ton
Average of daily settlement prices published by Baltic Exchange, quoted in percent of the Worldscale flat rate, multiplied by the prevailing Worldscale flat rate, measured in US $ per metric ton
Trading Hours
CME ClearPort: Sunday – Friday 6:00 p.m. – 5:15 p.m.
(5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT).Open Outcry: Monday – Friday 9:00 a.m. – 2:30 p.m.
(8:00 a.m. – 1:30 p.m. Chicago Time/CT).The fee schedule for these new average price option contracts is as follows:
Standard Fee
Monthly Threshold
Reduced Fee
Route
Commodity Code
Member
Non-Member
Blended
Member
Non-Member
Blended
TC2
TCW
$4.00
$5.00
$4.50
150 lots
$2.40
$3.00
$2.70
TC5
TCF
$4.00
$5.00
$4.50
150 lots
$2.40
$3.00
$2.70
TD3
TDT
$4.00
$5.00
$4.50
150 lots
$2.40
$3.00
$2.70
Fees will be applied to all participants based on their volume cleared through CME ClearPort in a calendar month period separately for each commodity, combined across delivery months. Where a participant’s cleared volume in a commodity exceeds the stated volume threshold, the Reduced Fee shall be applied to the participant’s cleared volume. Cleared volume amounts will be assessed at the account level: members’ volume will be assessed in their main account; non-members’ volume will be assessed in their trading account.
In addition, the following cash settlement fees will apply for all three contracts:
Fee
Member
Non-Member
Cash Settlement
$4.00
$5.00
For more information, please contact Richard Stevens at +44 20 7796 7129.
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