• Amendment to the Product Title and Final Settlement of the NYMEX Brent 25-Day (Platts) Futures Contract

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-6576
      • Notice Date
      • 28 February 2013
      • Effective Date
      • 17 March 2013
    • Effective Sunday, March 17, 2013 for trade date Monday, March 18, 2013, and pending all CFTC regulatory review periods, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will amend the product title and the final settlement reference of the NYMEX Brent 25-Day (Platts) Futures contract (Chapter 1186, Commodity code NBZ) such that the final settlement of the NYMEX Brent 25-Day contract will no longer be based on the Platts Brent 25-Day cash forward market assessment, but will be based on the ICE Brent Index Price as published one day after the final trading day for the contract month. The contract will remain listed for trading on the NYMEX trading floor, CME Globex and for submission for clearing through CME ClearPort. The proposed rule amendments appear below.
       
      (bold/underline indicates addition; strikethrough indicates deletion)
       
      Chapter 1186
      NYMEX Brent 25-Day (Platts) Futures
       
      1186100. SCOPE OF CHAPTER
      The provisions of these rules shall apply to all contracts bought or sold on the Exchange for
      cash settlement based on the Floating Price. The Floating Price is equal to the ICE Brent Index price as published one day after the final trading day for the contract month. The Floating Price is equal to the Platts Brent front month forward assessment from the 16:30 London close on the final trading day for the contract month. The Platts Brent forward assessment is also referred to as 25-day cash BFOE, which is a combination of Brent, Forties, Oseberg, and Ekofisk grades.  The
      procedures for trading, clearing and cash settlement of this contract, and any other matters not
      specifically covered herein shall be governed by the general rules of the Exchange.
       
       
      1186101. CONTRACT SPECIFICATIONS
      The Floating Price on the final trading day for the contract month shall be equal to the ICE Brent Index price as published one day after the final trading day for the contract month.
      The Floating Price on the final trading day for the contract month shall be the the Platts Brent
      front month forward assessment from the 16:30 London close as published in the Platts Crude
      Oil Marketwire.
       
      1186103. FINAL SETTLEMENT
      Final settlement under the contract shall be by cash settlement based on the ICE Brent Index price as published one day after the final trading day for the contract month.
      Final settlement under the contract shall be by cash settlement based on the Platts Brent front
      month cash assessment from the 16:30 London close on the final trading day for the contract
      month.   Final settlement, following termination of trading for a contract month, will be based on
      the Floating Price.
       
       
       
      1186104. DISCLAIMER
       
      NEITHER NEW YORK MERCANTILE EXCHANGE, INC. (“NYMEX”) ITS AFFILIATES NOR
      PLATTS, A DIVISION OF THE MCGRAW-HILL COMPANIES, INC. (“PLATTS”)
      GUARANTEES THE ACCURACY NOR COMPLETENESS OF THE PLATTS PRICE
      ASSESSMENT OR ANY OF THE DATA INCLUDED THEREIN.
      NYMEX, ITS AFFILIATES OR PLATTS MAKE NO WARRANTIES, EXPRESS OR IMPLIED,
      AS TO THE RESULTS TO BE OBTAINED BY ANY PERSON OR ENTITY FROM USE OF
      THE PLATTS PRICE ASSESSMENT, TRADING AND/OR CLEARING BASED ON THE
      PLATTS PRICE ASSESSMENT, OR ANY DATA INCLUDED THEREIN IN CONNECTION
      WITH THE TRADING AND/OR CLEARING OF THE CONTRACT, OR, FOR ANY OTHER
      USE. NYMEX, ITS AFFILIATES AND PLATTS MAKE NO WARRANTIES, EXPRESS OR
      IMPLIED, AND HEREBY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR
      FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE PLATTS
      PRICE ASSESSMENT OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF
      THE FOREGOING, IN NO EVENT SHALL NYMEX, ITS AFFILIATES OR PLATTS HAVE ANY
      LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR
      CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE
      POSSIBILITY OF SUCH DAMAGES.
      “Platts,” is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by
      New York Mercantile Exchange, Inc. Platts does not sponsor, endorse, sell or promote the
      contract and Platts makes no recommendations concerning the advisability of investing in the
      contract.
       
      Please refer questions on this subject to:
       
      Research and Product Development
      Daniel Brusstar, daniel.brusstar@cmegroup.com, (212) 299-2604