• Increase of Minimum Price Fluctuation of Three Brent Futures

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-6499
      • Notice Date
      • 17 December 2012
      • Effective Date
      • 13 January 2013
    • Effective Sunday, January 13, 2013 for trade date Monday, January 14, 2013, and pending all relevant CFTC regulatory review periods, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will revise the minimum price fluctuation for three (3) petroleum futures contracts listed for trading on the NYMEX trading floor and CME Globex, and for submission for clearing through CME ClearPort.
      The contracts affected by this change are as follows:

      Contract
      Code
      Rule Chapter
      Dated Brent (Platts) Calendar Futures
      UB
      647
      Dated to Frontline Brent Futures
      FY
      695
      Brent (ICE) Calendar Futures
      CY
      696

      For each of these contracts, the minimum price fluctuation shall be revised from $0.001 per barrel to $0.01 per barrel. The Exchange believes there would be no material impact on the value of existing open positions as a result of the implementation of this change. The rule amendments will align the contracts with established and accepted pricing practices in these and related markets.
      The amendments to the rules relating to the increase in minimum price fluctuation limit for the above-listed contracts are provided in black-line format below (underline reflects addition; strikethrough reflects deletion).
      Chapter 647
      Dated Brent (Platts) Calendar Futures
      647.05.        PRICES AND FLUCTUATIONS
                         Prices shall be quoted in U.S. dollars and cents per barrel. The minimum price fluctuation shall be $0.01$0.001 per barrel. There shall be no maximum price fluctuation.
      Chapter 695
      Dated to Frontline Brent Futures
      695.05.        PRICES AND FLUCTUATIONS
                         Prices shall be quoted in U.S. dollars and cents per barrel. The minimum price fluctuation shall be $0.01$0.001 per barrel. There shall be no maximum price fluctuation.
      Chapter 696
      Brent (ICE) Calendar Futures
      696.05.        PRICES AND FLUCTUATIONS
                         Prices shall be quoted in U.S. dollars and cents per barrel. The minimum price fluctuation shall be $0.01$0.001 per barrel. There shall be no maximum price fluctuation.
      Please refer questions on this subject to:
      Research and Product Development
      Dan Brusstar                   Daniel.Brusstar@cmegroup.com                  212 299 2604
      Richard Stevens              Richard.Stevens@cmegroup.com                +44 (20) 3379 3790
      Elizabeth Hui                   Elizabeth.Hui@cmegroup.com                     +44 (20) 3379 3707

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