• Amendment to the Freight Route TD3 (Baltic) Swap Futures Contract

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • SER-6361
      • Notice Date
      • 17 August 2012
      • Effective Date
      • 04 September 2012
    • Effective Tuesday, September 4, 2012, for trade date Wednesday, September 5, 2012, and pending all relevant CFTC regulatory review periods, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will amend the floating price rule for the Freight Route TD3 (Baltic) Swap futures contract (code TL, chapter 684) in order to revise the description of the route contained within the rule chapter in conformance with the definition at the Baltic Exchange.
      The rule amendment reflecting the revised description of the route for the Freight Route TD3 (Baltic) Swap futures contract is presented in black-line format below. 
      (bold/underline indicates addition; strikethrough indicates deletion)
      Chapter 684
      Freight Route TD3 (Baltic) Swap Futures
      684.02.        FLOATING PRICE
                         The Floating Price for each contract month is equal to the arithmetic average of the rates for each business day that the TD3 Tanker Route (for 260,000 250,000 metric tons for Middle East Gulf Arab Gulf to Japan) is published by the Baltic Exchange over the contract month. If for any reason the Baltic Exchange cannot provide any rate required for establishing the Floating Price, then the Forward Freight Agreement Brokers Association (FFABA) may be instructed by either party to form a panel to establish any rate which will be binding on both parties.
      Please refer questions on this subject to:
      Research and Product Development
      Richard Stevens                        Richard.Stevens@cmegroup.com                      +44 203 379 3790
      Products and Services
      Justin Bozzino                           Justin.Bozzino@cmegroup.com                         +44 203 379 3722