• Reduction of Minimum Price Fluctuation of Five Petroleum Futures and Five Petroleum Option Contracts

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-6500
      • Notice Date
      • 17 December 2012
      • Effective Date
      • 13 January 2013
    • Effective Sunday, January 13, 2013 for trade date Monday, January 14, 2013, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will reduce the minimum price fluctuation from $0.01 to $0.001 for four (4) petroleum futures contracts and three (3) petroleum options 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
      European 3.5% Fuel Oil (Platts) Barges FOB Rdam Average Price Option
      Q6
      660A
      European 3.5% Fuel Oil (Platts) Cargoes FOB MED Calendar Futures
      UI
      661
      Northwest Europe Fuel Oil High-Low Sulfur Spread (Platts) Futures
      FS
      665
      Gasoil Crack Spread Average Price Option
      3U
      710A
      1% Fuel Oil (Platts) Cargoes FOB NWE Crack Spread Futures
      FI
      727
      3.5% Fuel Oil Barges FOB Rdam vs. 3.5% FOB MED Spread (Platts) Futures
      FK
      734
      Gasoil Average Price Option
      F7
      748

      In addition, effective Sunday, January 13, 2013 for trade date Monday, January 14, 2013, the Exchange will reduce the minimum price fluctuation from $0.01 to $0.001 for one (1) petroleum futures contract and two (2) petroleum options contracts listed for trading on the NYMEX trading floor, and for submission for clearing through CME ClearPort. The contracts affected by this change are as follows:

      Contract
      Code
      Rule Chapter
      3.5% Fuel Oil (Platts) FOB MED Crack Spread Futures
      FL
      735
      European 1% Fuel Oil (Platts) Barges FOB Rdam Average Price Option
      EFB
      782
      European Naphtha (Platts) Cargoes CIF NWE Average Price Option
      NWE
      1213

      The Commodity Futures Trading Commission (CFTC) will be notified of the reduction of the minimum price fluctuation limits during the week of January 20, 2013, via the weekly notification procedures set forth in Part 40 of the CFTC Regulations.
      The amendments to the rules relating to the reduction in minimum price fluctuation limit for the above-listed contracts are provided in black-line format below (underline reflects addition; strikethrough reflects deletion).
      Chapter 661
      European 3.5% Fuel Oil (Platts) Cargoes FOB MED Calendar Futures
      661.05.        PRICES AND FLUCTUATIONS
                         Prices shall be quoted in U.S. dollars and cents per metric ton. The minimum price fluctuation shall be $0.01$0.001 per metric ton. There shall be no maximum price fluctuation.
      Chapter 665
      Fuel Oil Diff: 1% NWE FOB Cargoes vs. 3.5% Barges (Platts) Futures
      665.05.        PRICES AND FLUCTUATIONS
                         Prices shall be quoted in U.S. dollars and cents per metric ton. The minimum price fluctuation shall be $0.01$0.001 per metric ton. There shall be no maximum price fluctuation.
      Chapter 727
      1% Fuel Oil (Platts) Cargoes FOB NWE Crack Spread Futures
      727.05.        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 734
      3.5% Fuel Oil FOB MED vs. 3.5% Fuel Oil Barges FOB Rdam Spread (Platts) Futures
      734.05.        PRICES AND FLUCTUATIONS
                         Prices shall be quoted in U.S. dollars and cents per metric ton. The minimum price fluctuation shall be $0.01$0.001 per metric ton. There shall be no maximum price fluctuation.
      Chapter 735
      3.5% Fuel Oil (Platts) FOB MED Crack Spread Futures
      735.05.        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 660A
      European 3.5% Fuel Oil (Platts) Barges FOB Rdam Average Price Option
      660A.06.      PRICES IN EUROPEAN EUROPEAN 3.5% FUEL OIL (PLATTS) BARGES FOB RDAM AVERAGE PRICE OPTION CONTRACT
                         Prices shall be quoted in dollars and cents per barrel and prices shall be in multiples of $0.001 per barrel one (1) cent per barrel. A cabinet trade may occur at a price of $.001 per metric ton, or $1.00 per contract.
      Chapter 710A
      Gasoil Crack Spread Average Price Option
      710A.07       PRICES
                         Prices shall be quoted in dollars and cents per barrel and prices shall be in multiples of $0.001 per barrel. A cabinet trade may occur at the price of $.001 per barrel or $1.00 per contract, however, if it results in theliquidation of positions of both parties to the trade.
      Chapter 748
      Gasoil Average Price Option
      748.06.        PRICES IN GASOIL AVERAGE PRICE CONTRACTS
                         Prices shall be quoted in dollars and cents per metric ton. The minimum price increment will be $0.01$0.001 per metric ton. A cabinet trade may occur at a price of $.001 per metric ton, or $1.00 per contract.
      Chapter 782
      European 1% Fuel Oil (Platts) Barges FOB Rdam Average Price Option
      782.05         PRICES
                         Prices shall be quoted in dollars and cents per metric ton and prices shall be in multiples of $0.001one (1) cent per metric ton. A cabinet trade may occur at a price of $.001 per metric ton, or $1.00 per contract.
      Chapter 1213
      European Naphtha (Platts) Cargoes CIF NWE Average Price Option
      1213101.      OPTION CHARACTERISTICS
                         1213101.C. Price Increments
                         Prices shall be quoted in dollars and cents per metric ton and prices shall be in multiples of $0.001$0.01 (1 cent) per metric ton. However, aA cabinet trade may occur at a price of $0.001 per metric ton, or $1.00 per contract.
       
       
       
      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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