• Listing of Existing Platinum Option and Palladium Option Contracts on CME Globex Trading Platform and Amendment to the Strike Price Increment for the Palladium Option Contract

      • To
      • Members, Member Firms and Market Users
      • From
      • Metals Research
      • #
      • SER-6539
      • Notice Date
      • 30 January 2013
      • Effective Date
      • 24 February 2013
    • Effective Sunday, February 24, 2013 for trade date Monday, February 25, 2013, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will list its Platinum Option (PO) and Palladium Option (PAO) contracts on the CME Globex trading platform pending CFTC review. These contracts will continue to be available for trading on the NYMEX trading floor and for clearing through CME ClearPort. In addition, the strike price increment for the Palladium Option contract will change from $1.00 to $5.00.
       
      ·         CME Globex Codes: Platinum Option: PO; Palladium Option: PAO
      ·         Clearing Codes: Platinum Option: PO; Palladium Option: PAO
      ·         CME Globex Listing Schedule: 3 consecutive months
      ·         Rule Chapters: Platinum Option: 360; Palladium Option: 119
       
      PO and PAO CME Globex Trading and Clearing Fees:

       

      Product Profile
       
      Product Name
      Platinum Option
       
      Product Code
      PO
      Settlement Type
      Physical 
      Exchange Division
      NYMEX 
      Contract Size
      50 ounces 
      Sector
      Metals
      Trading Venues
      Globex 
      Product Type
      Option

       

      Exchange Fees
       
       
      Member Day
      Member Overnight
      Cross Division
      Non-Member
      IIP
      LATAM/AIP
      Globex
      $0.45
      $0.70
      n/a
                    $1.45
      $0.75
      $1.00
       

       
       
       
       
       

      Product Profile
       
      Product Name
      Palladium Option
       
      Product Code
      PAO
      Settlement Type
      Physical 
      Exchange Division
      NYMEX 
      Contract Size
      100 ounces 
      Sector
      Metals
      Trading Venues
      Globex 
      Product Type
      Option

       
       

      Exchange Fees
       
       
      Member Day
      Member Overnight
      Cross Division
      Non-Member
      IIP
      LATAM/AIP
      Globex
      $0.45
      $0.70
      n/a
                    $1.45
      $0.75
      $1.00
       

       
       
      The amendment to the rules relating to the increase in the Palladium Option contract strike price increment is provided in black-line format below:
       
      Proposed Rule Revisions:
       
      UNDERSCORE denotes addition; Strikethrough denotes deletion
       
      Chapter 119: Palladium Option
       
      119.05 STRIKE PRICES
       
      Trading shall be conducted for options with strike prices in increments as set forth below. (A) On the first business day of trading in an option contract month, trading shall be at the following strike prices: (i) the previous day's settlement price of Palladium Futures contracts in the corresponding delivery month rounded off to the nearest five one dollar strike price, unless such settlement price is precisely midway between two strike prices in which case it shall be rounded off to the lower strike price and (ii) the five five one -dollar increment strike prices which are five increments higher than the strike price described this Rule 119.05(A) and (iii) the five five one -dollar increment strike prices which are five increments lower than the strike price described in this Rule 119.05(A); (B) Thereafter, on any business day prior to the expiration of the option, (i) new consecutive strike prices for both puts and calls will be added such that at all times there will be at least five five one -dollar strike prices above and below the at-the-money strike price available for trading.
       
       
       
      Metals Research:
      Bob Biolsi                                 bob.biolsi@cmegroup.com                               212.299.2610
      Joann Arena                              joann.arena@cmegroup.com                             212.299.2356

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