• Amendments to the LOOP Gulf Coast Sour Crude Oil Futures Contract

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-7396
      • Notice Date
      • 24 April 2015
      • Effective Date
      • 10 May 2015
    • Effective Sunday, May 10, 2015 for trade date Monday, May 11, 2015, and pending all relevant CFTC regulatory review periods, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will implement a clarification amendment to the LOOP Gulf Coast Sour Crude Oil Futures contract.


      Commodity Code

      NYMEX Rulebook Chapter

      Trading and Clearing Venues

      LOOP Gulf Coast Sour Crude Oil Futures



      CME Globex, NYMEX trading floor, CME ClearPort,


      Specifically, the rule amendment will provide clarity about the buyer’s current responsibility to pay any additional fees incurred related to the buyer’s selection of a delivery option.  The amended NYMEX rulebook chapter is as follows:


      (bold/underline indicates addition)


      Chapter 506

      LOOP Gulf Coast Sour Crude Oil Futures


      506104.             DELIVERY

                              Delivery shall be made free-on-board (“F.O.B.”) LOOP LLC’s storage cavern designated for LOOP Sour Storage, or any other storage facility designated by LOOP LLC, at Clovelly, Louisiana.   Delivery shall be made in accordance with LOOP’s Port Complex Terms and Conditions of Service and/or Clovelly Hub Terminalling Services – Connecting Carrier Receipts Terms and Conditions of Service, as published and revised from time to time and available at www.loopllc.com or upon request.   Delivery shall be made in accordance with all applicable Federal executive orders and all applicable Federal, State and local laws and regulations. For the purposes of this rule, the term F.O.B. shall mean a delivery in which the seller:  (1) provides crude oil to the point of connection between LOOP LLC’s facilities and the buyer’s outgoing pipeline or storage facility which is free from all import duties, liens, encumbrances, unpaid taxes, fees and other charges; (2) retains title to and bears the risk of loss for the product to the point of connection between the buyer’s outgoing and the seller’s incoming pipeline or storage facility.  At buyer’s option and expense, such delivery shall be made by any of the following methods: (1) by intrafacility or interfacility transfer (“pumpover”) into a designated storage facility or pipeline; or (2) by in-line transfer, in-system transfer, or by in-tank transfer of title to the buyer without physical movement of product, if the facility allows such transfer.


      Please refer questions on this subject to:


      Energy Research


      Daniel Brusstar                          Daniel.Brusstar@cmegroup.com                        212.299.2604