• Listing of Crude Oil Weekly Option and Natural Gas Weekly Option Contracts

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-7039R
      • Notice Date
      • 11 April 2014
      • Effective Date
      • 13 April 2014
    • (This SER supersedes SER #7039 dated March 20, 2014 to reflect amended First Listing for the Natural Gas Weekly Option contract.)

      Effective Sunday, April 13, 2014, for trade date Monday, April 14, 2014, and pending all relevant CFTC regulatory review periods, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will list Crude Oil Weekly Option and Natural Gas Weekly Option contracts for trading on the NYMEX trading floor and CME Globex.

       

      CONTRACT SPECIFICATIONS:

       

      •       Title: Crude Oil Weekly Option

      •       Commodity Code: LO1-LO5

      •       Rule Chapter: 1011

      •       First Listing: April 25, May 2, May 9, May 16

      •       Listing Period: Four weekly expirations, unless expiration coincides with a monthly option expiration, in which case it will not be listed.

      •       Contract Size: 1,000 barrels

      •       Termination of Trading: Options expire on Friday. If the Friday of the listing is a scheduled Exchange holiday, the option shall terminate on the first Business Day immediately preceding the Friday. However, if the first Business Day immediately preceding the Friday is the expiration of a Crude Oil monthly option, the weekly option shall not be listed for trading.

      •       Minimum Price Tick: $0.01 per barrel

      •       Value per Tick: $10.00

      •       Final Settlement Price Tick: $0.01 per barrel

      •       Trading and Clearing Hours:

      Open Outcry: Monday – Friday 9:00 a.m. – 2:30 p.m. (8:00 a.m. – 1:30 p.m. Chicago Time/CT).

      CME Globex:  Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT).

       

       

       

      •       Title: Natural Gas Weekly Option

      •       Commodity Code: ON1-ON5

      •       Rule Chapter: 1012

      •       First Listing: May 2, May 9, May 16

      •       Listing Period: Four weekly expirations, unless expiration coincides with a monthly option expiration, in which case it will not be listed.

       

      •       Contract Size: 10,000 MMBTU

      •       Termination of Trading: Options expire on Friday. Options expire on Friday. If the Friday of the listing is a scheduled Exchange holiday, the option shall terminate on the first Business Day immediately preceding the Friday. However, if the first Business Day immediately preceding the Friday is the expiration of a Natural Gas monthly option, the weekly option shall not be listed for trading.

      •       Minimum Price Tick: $0.001 per MMBTU

      •       Value per Tick: $10.00

      •       Final Settlement Price Tick: $0.001 per MMBTU

      •       Trading and Clearing Hours:

      Open Outcry: Monday – Friday 9:00 a.m. – 2:30 p.m. (8:00 a.m. – 1:30 p.m. Chicago Time/CT).

      CME Globex:  Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT).

       

      •       Exchange Fees for Crude Oil Weekly Option and Natural Gas Weekly Option:

      Exchange Fees

       

      Member Day

      Member

      Cross Division

      Non-Member

      IIP

      Pit

      $0.45

      $0.70

      $0.95

      $1.45

       

      Globex

      $0.45

      $0.70

      $0.95

      $1.45

      $0.95

       

       

       

       

       

       

                 

      Other Processing Fees

           

       

      Member

      Non-Member

           

      Cash Settlement

      x

      x

      *only applies to financially settled contracts

      Futures from E/A

      x

      x

      *applies to futures contracts

       

      House Acct

      Customer Acct

       

      Options E/A Notice

      $0.40

      $0.85

      *applies to physical options

       

       

       

       

                     

       

      Additional Fees and Surcharges

           

       

      EFS Surcharge

      x

      *$2.50 fee typically only charged on our core physical contracts

      Block Surcharge

      $0.00

      *$0.10 fee charged on block trades

      Facilitation Desk Fee

      $0.20

      *fee applies to CPC trades entered by ClearPort Market Ops

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

               

       

      Please refer questions on this subject to:

      Research and Product Development

      Robert Biolsi                             Bob.Biolsi@cmegroup.com                      (212) 299-2610

      Jeff White                                 Jeff.White@cmegroup.com                   (212) 299-2325