• Amendments to CME Globex Minimum Tick Size for Three (3) Natural Gas Contracts

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-7139
      • Notice Date
      • 11 July 2014
      • Effective Date
      • 03 August 2014
    • Effective Sunday, August 3, 2014 for trade date Monday, August 4, 2014, and pending all relevant CFTC regulatory review periods, New York Mercantile Exchange, Inc. (NYMEX or Exchange) will amend the CME Globex minimum tick size from $0.0001 to $0.001 for the three (3) contracts listed below. The minimum tick size of $0.0001 for these three (3) contracts for transaction submitted for clearing through CME ClearPort and for trades executed on the NYMEX trading floor will remain unchanged. The affected contracts, along with the associated codes, and rulebook chapter numbers are provided below.  Also below are the amendments to the product rule chapters in blackline format.

       

       

      The contracts, rule chapters, and corresponding codes are as follows:

       

      Contract

      Rule Chapter

      Code

      Henry Hub Natural Gas Penultimate Financial Futures

      529

      NP

      Henry Hub Natural Gas European Financial Option

      560

      LN

      Henry Hub Natural Gas Look-Alike Penultimate Financial Futures

      824

      HP

       

       

      (underline indicates addition)

       

       

       

      Chapter 529

      Henry Hub Natural Gas Penultimate Financial Futures

       

       

      529.05 PRICES AND FLUCTUATIONS

       

      Prices shall be quoted in U.S. dollars and cents per MMBtu. The minimum price fluctuation shall be $0.0001 per MMBtu for transactions submitted through CME ClearPort or trades executed via open outcry.  The minimum price fluctuation shall be $0.001 per MMBtu for trades executed on CME Globex. The maximum price fluctuation shall be consistent with the prevailing price limits of the Henry Hub Natural Gas futures contract.

       

       

       

       

       

       

       

       

       

      Chapter 824

      Henry Hub Natural Gas Look-Alike Penultimate Financial Futures

       

       824.05. PRICES AND FLUCTUATIONS

       

      Prices shall be quoted in U.S. dollars and cents per MMBtu. The minimum price fluctuation shall be $0.0001 per MMBtu for transactions submitted through CME ClearPort or trades executed via open outcry. The minimum price fluctuation shall be $0.001 per MMBtu for trades executed on CME Globex. The maximum price fluctuation shall be consistent with the prevailing price limits of the Henry Hub Natural Gas futures contract.

       

      Chapter 560

      Henry Hub Natural Gas European Financial Option

       

       560.04 PRICES

       

      Prices shall be quoted in dollars and hundredths of cents per MMBtu. A cabinet trade may occur at the price of $.0001 per MMBtu or $1.00, however, if it results in the liquidation of positions of both parties to the trade. The minimum price fluctuation shall be $0.0001 per MMBtu for transactions submitted through CME ClearPort or trades executed via open outcry.  The minimum price fluctuation shall be $0.001 per MMBtu for trades executed on CME Globex.

       

       

       

      Please refer questions on this subject to:

      Research and Product Development

      Adila Mchich                             Adila.mchich@cmegroup.com                           (212) 299-2270

       

       

      Products and Services

      Stephen Smith                          Stephen.smith@cmegroup.com                         (713) 658-9295

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