• Listing of Two (2) Midwest ISO Michigan Hub Electricity Futures

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • SER-6155
      • Notice Date
      • 08 March 2012
      • Effective Date
      • 25 March 2012
    • Effective Sunday, March 25, 2012, for trade date Monday, March 26, 2012, and pending all relevant CFTC regulatory review periods, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will launch two (2) Midwest ISO Michigan Hub swap futures contracts for trading on the NYMEX trading floor and for submission for clearing through CME ClearPort. The contracts are listed with, and subject to, the rules and regulations of NYMEX. NYMEX will allow the exchange of futures for related position (EFRP) transactions to be submitted through CME ClearPort pursuant to the provisions of Exchange Rule 538. 
      PRODUCT SPECIFICATIONS
      Title, Rule Chapter and Commodity Code
      Contracts
      Code
      Rule Chapter
      Midwest ISO Michigan Hub 5 MW Peak Calendar-Month Day-Ahead Swap Futures
      HMW 
      1134
      Midwest ISO Michigan Hub 5 MW Off-Peak Calendar-Month Day-Ahead Swap Futures
      HMO
      1135
      Listing Schedule
      Peak and off-peak contracts: the first listed contract month shall be April 2012. The contracts will be listed for the current year plus the next five calendar years. A new calendar year will be added following the termination of trading in the December contract of the current year.
      Days and Hours
      "Peak Days" shall mean a Monday through Friday, excluding North American Electric Reliability Corporation holidays. “Peak Hours” shall mean Hour Ending 0800 through 2300 Eastern Prevailing Time (EPT).
      "Off-Peak Days & Hours" shall mean a Monday through Friday Hour Ending (HE) 0100-0700 and 2400 Eastern Prevailing Time (EPT) Saturday-Sunday HE 0100-2400 EPT including North American Electric Reliability Corporation holidays.
      Contract Quantity
      Peak monthly contract: The contract quantity shall be 80 Megawatt hours (MWh) and is based on 5 megawatts for peak daily hours. Transaction sizes for trading in any contract month shall be restricted to whole number multiples of the number of peak days in the month. Each futures contract shall be valued at the contract quantity multiplied by the settlement price.
      Off-peak monthly contract: The contract quantity shall be 5 MWh. Transaction sizes for trading in any contract month shall be restricted to whole number multiples of the number of off-peak hours in the month. Each futures contract shall be valued at the contract quantity multiplied by the settlement price.
      Prices and Fluctuations
      Prices shall be quoted in U.S. dollars and cents per MWh. The minimum price fluctuation shall be $0.05 per MWh.
      Value per Tick
      Peak monthly contract: $4.00
      Off-peak monthly contract: $0.25
      Termination of Trading
      Peak and Off-peak monthly contracts: Trading shall cease the last business day of the contract month.
       
      1.     Fee Schedule for the new Midwest ISO Michigan Hub peak futures contracts:
       

      Exchange Fees
       
      Member Day
      Member
      Cross Division
      Non-Member
      IIP
      Pit
      na
      $0.35
      $0.37
      $0.40
       
      Globex
      na
      na
      na
      na
      na
      ClearPort
       
      $0.35
       
      $0.40
       
      Processing Fees
      Additional Fees and Surcharges
       
      Member
      Non-Member
      EFS Surcharge
      na
      Cash Settlement
      $0.40
      $0.40
      Block Surcharge
      na
      Futures from E/A
      na
      na
      Facilitation Desk Fee
      $0.02

       
      2.     Fee Schedule for the new Midwest ISO Michigan Hub off-peak futures contracts:
       

      Exchange Fees
       
      Member Day
      Member
      Cross Division
      Non-Member
      IIP
      Pit
      na
      $0.02
      $0.03
      $0.03
       
      Globex
      na
      na
      na
      na
      na
      ClearPort
       
      $0.02
       
      $0.03
       
      Processing Fees
      Additional Fees and Surcharges
       
      Member
      Non-Member
      EFS Surcharge
      na
      Cash Settlement
      $0.02
      $0.03
      Block Surcharge
      na
      Futures from E/A
      na
      na
      Facilitation Desk Fee
      $0.001

       
      Trading and Clearing Hours: Open Outcry: Monday – Friday 9:00 a.m. – 2:30 p.m. (8:00 a.m. – 1:30 p.m. Chicago Time/CT). CME ClearPort: Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT).
       
      Should you have any questions or require any further information, please contact Kristen Bauer at (713) 658-9294.

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