• Listing of Nine (9) New Renewable Fuel Contracts - Renewable Identification Number (RINs) (Argus) Futures

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-6639R
      • Notice Date
      • 09 May 2013
      • Effective Date
      • 12 May 2013
    • This SER supersedes SER #6639 issued on April 25, 2013.
      As previously announced, effective Sunday, May 12, 2013, for trade date Monday, May 13, 2013, and pending all relevant CFTC regulatory review periods, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will launch nine (9) new Renewable Identification Number (RINs) futures contracts for trading on CME Globex, the NYMEX trading floor, and for submission of clearing through CME ClearPort (see SER #6639 dated April 25, 2013)
       
      Please be advised that the first listed contract month for the: (1) D4 Biodiesel RINs (Argus) 2014 Futures; (2) D5 Advanced Biofuel RINs (Argus) 2014 Futures; and (3)  D6 Ethanol RINs (Argus) 2014 Futures contracts will be January 2014, and not May 2013, as previously described in SER #6639. The balance of the information contained in the original SER remains unchanged.     
       
      These new contracts will be financially-settled based on the Argus index for three (3) types of RINs for renewable fuel (D4 Biodiesel, D5 Advanced Biofuel, and D6 Ethanol), and each type will be listed for three (3) vintage years. The RINs futures contracts will be used to hedge the price risk associated with the U.S. Environmental Protection Agency’s (EPA) renewable fuel standard (RFS2). The EPA has created a credit trading system for compliance with RFS2 for various types of renewable fuels based on units called RINs.
       
      Also concurrent with the launch of these contracts and pending all relevant CFTC regulatory review periods, the Exchange will permit block trading pursuant to Rule 526 (Block Trades) in these contracts at a block trade minimum threshold of five (5) contracts. 
       
      CONTRACT SPECIFICATIONS

      Contract Name
      Code
      Rule Chapter
      Listing Schedule
      First Listed Contract
      Contract Size
      Prices and Fluctuations
      D4 Biodiesel RINs (Argus) 2012 Futures
      D42
      1157
      ClearPort/Floor: Monthly through Feb 2014
      Globex: Front month
      May 2013
      50,000 RINs
      Minimum price tick = $0.0001 per RIN.
      Value per tick = $5.00
      D4 Biodiesel RINs (Argus) 2013 Futures
      D43
      1158
      ClearPort/Floor: Monthly through Feb 2015
      Globex: Front month
      May 2013
      50,000 RINs
      Minimum price tick = $0.0001 per RIN.
      Value per tick = $5.00
      D4 Biodiesel RINs (Argus) 2014 Futures
      D44
      1159
      ClearPort/Floor: Monthly through Feb 2016
      Globex: Front month
      Jan. 2014
      50,000 RINs
      Minimum price tick = $0.0001 per RIN.
      Value per tick = $5.00
      D5 Advanced Biofuel RINs (Argus) 2012 Futures
      D52
      1160
      ClearPort/Floor: Monthly through Feb 2014
      Globex: Front month
      May 2013
      50,000 RINs
      Minimum price tick = $0.0001 per RIN.
      Value per tick = $5.00
      D5 Advanced Biofuel RINs (Argus) 2013 Futures
      D53
      1161
      ClearPort/Floor: Monthly through Feb 2015
      Globex: Front month
      May 2013
      50,000 RINs
      Minimum price tick = $0.0001 per RIN.
      Value per tick = $5.00
      D5 Advanced Biofuel RINs (Argus) 2014 Futures
      D54
      1162
      ClearPort/Floor: Monthly through Feb 2016
      Globex: Front month
      Jan. 2014
      50,000 RINs
      Minimum price tick = $0.0001 per RIN.
      Value per tick = $5.00
      D6 Ethanol RINs (Argus) 2012 Futures
      D62
      1163
      ClearPort/Floor: Monthly through Feb 2014
      Globex: Front month
      May 2013
      50,000 RINs
      Minimum price tick = $0.0001 per RIN.
      Value per tick = $5.00
      D6 Ethanol RINs (Argus) 2013 Futures
      D63
      1164
      ClearPort/Floor: Monthly through Feb 2015
      Globex: Front month
      May 2013
      50,000 RINs
      Minimum price tick = $0.0001 per RIN.
      Value per tick = $5.00
      D6 Ethanol RINs (Argus) 2014 Futures
      D64
      1165
      ClearPort/Floor: Monthly through Feb 2016
      Globex: Front month
      Jan. 2014
      50,000 RINs
      Minimum price tick = $0.0001 per RIN.
      Value per tick = $5.00

       
       
      TRADING AND CLEARING HOURS

      CME Globex and CME ClearPort
      Sunday - Friday 6:00 p.m. - 5:15 p.m. (5:00 p.m. - 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT)
      Open Outcry
      Monday - Friday 9:00 a.m. - 2:30 p.m. (8:00 a.m. to 1:30 p.m. CT)

      FEE SCHEDULE

      Exchange Fees
      Member Day
      Member
      Cross Division
      Non-Member
      IIP
      Pit
      X
      .85
      1.10
      1.35
      Globex
      X
      .85
      1.10
      1.35
      1.10
      ClearPort
      .85
      1.35
      Other Processing Fees
      Member
      Non-Member
      Cash Settlement
      .85
      1.35
      *only applies to financially settled contracts
      Futures from E/A
      X
      X
      *applies to futures contracts
      House Acct
      Customer Acct
      Options E/A Notice
      X
      X
      *applies to physical options
      Delivery Notice
      X
      X
      *applies to physical futures
      Additional Fees and Surcharges
      EFS Surcharge
      X
      *$2.50 fee typically only charged on our core physical contracts
      Block Surcharge
      X
      *$0.10 fee charged on block trades
      Facilitation Desk Fee
      .20
      *applies to CPC trades entered by ClearPort Market Ops

       
       
      Please refer questions on this subject to:
      Business Line Management
      Russell Karas                            Russell.Karas@cmegroup.com                          212.299.2345
      Energy Research:
      Dan Brusstar                             Daniel.Brusstar@cmegroup.com                        212.299.2604

      Funda Saygin                            Funda.Saygin@cmegroup.com                          212.299.2338

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