SER-5803 - CME Group

Listing of Short-Term Options on Crude Oil, Natural Gas and Gold

- To
- Members, Member Firms and Market Users
- From
- Market Regulation Department
- #
- SER-5803
- Notice Date
- 21 June 2011
- Effective Date
- 17 July 2011

Please be advised that effective Sunday, July 17, 2011, for trade date Monday, July 18, 2011, the New York Mercantile Exchange, Inc. (NYMEX) and the Commodity Exchange (COMEX) will list three new short-term option contracts on crude oil, natural gas, and gold for trading on CME Globex, NY trading floor and for submission for clearing through CME ClearPort. The Short-Term Crude Oil and Natural Gas options are listed with NYMEX, and subject to, the rules and regulations of NYMEX and Chicago Mercantile Exchange Inc. The Short-Term Gold option is listed with COMEX, and subject to, the rules and regulations of COMEX and Chicago Mercantile Exchange Inc.

The proposed short-term option contracts are European-style options which can only be exercised at expiration. The listing convention of the short-term option contracts is such that the contracts are listed on the current day and the following four business days within a seven-calendar day period, unless that business day coincides with the expiration of an associated monthly option in which case the short-term option contracts will not be listed. No short-term option shall be listed if its expiration coincides with an Exchange holiday.

On the evening of July 17, 2011, for trade date July 18, 2011, until the evening of July 21, 2011, for trade July 22, 2011, a new short-term option will be listed each day with a five-business day expiration. Expiration day will coincide with the contract ticker symbol. For example, C25 N11 would coincide with a Short-Term Crude Oil option expiration of July 25, 2011. Thus, as of the evening of July 21, 2011, for trade date July 22, 2011, there will be five business day short-term options on each of crude oil, natural gas and gold. Thereafter, on each business day as each short-term option expires, a new short-term option will be listed with expiration five (5) business days hence, unless that expiration day coincides with that of an associated monthly option, in which case the short-term option will not be listed.

SPECIFICATIONS:

	NYMEX Short-Term Crude Oil Option	NYMEX Short-Term Natural Gas Option	COMEX Short-Term Gold Option
Commodity Code (the numeric indicator indicates the calendar day on which the option expires)	C01-C31	U01-U31	L01-L31
Option Type	Financially settled, European style option	Financially settled, European style option	Financially settled, European style option
Underlying Futures	The first nearby Light Sweet Crude Oil futures (CL) contract, unless it is the last day of trading for that contract, in which case the underlying futures will be the second nearby Light Sweet Crude Oil futures (CL) contract.	The first nearby Henry Hub Natural Gas futures (NG) contract, unless it is the last day of trading for that contract, in which case the underlying futures will be the second nearby Henry Hub Natural Gas futures (NG) contract.	The first nearby February, April, June, August, October, or December Gold futures (GC) contract, unless it is after the last day of trading for the monthly option on that contract, in which case the underlying futures will be the second nearby February, April, June, August, October, or December Gold futures (GC) contract.
Contract Unit	1,000 barrels	10,000 MMBtu	100 troy ounces
	NYMEX Short-Term Crude Oil Option	NYMEX Short-Term Natural Gas Option	COMEX Short-Term Gold Option
Expiration Date	Expiration day will coincide with the contract ticker symbol. For example, C25 N11 would coincide with a Short-Term Crude Oil option expiration of July 25, 2011.	Expiration day will coincide with the contract ticker symbol. For example, U25 N11 would coincide with a Short-Term Natural Gas option expiration of July 25, 2011.	Expiration day will coincide with the contract ticker symbol. For example, L25 N11 would coincide with a Short-Term Gold option expiration of July 25, 2011.
Minimum Price Fluctuation	$0.01 per barrel	$0.0001 per MMBtu	$0.10 per troy ounce
Strike Price Intervals	$0.50 per barrel	$0.05 per MMBtu	$5 per troy ounce
Listing Convention	Current day and the following four business days within a seven-calendar day period, unless that business day coincides with the expiration of a monthly Crude Oil option in which case it will not be listed. No short-term option shall be listed if its expiration coincides with an Exchange holiday.	Current day and the following four business days within a seven-calendar day period, unless that business day coincides with the expiration of a monthly Natural Gas option in which case it will not be listed. No short-term option shall be listed if its expiration coincides with an Exchange holiday.	Current day and the following four business days within a seven-calendar day period, unless that business day coincides with the expiration of a monthly Gold option in which case it will not be listed. No short-term option shall be listed if its expiration coincides with an Exchange holiday.
Rule Chapter	1065	1066	1067

Exchange Fees for NYMEX Short-Term Crude Oil and Natural Gas Options:

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	$0.75
ClearPort		$1.75		$2.50

Processing Fees
	Member	Non-Member
Cash Settlement	$0.90	$1.15
Futures from E/A	NA	NA
	House Acct	Cust Acct
Options E/A Notice	NA	NA
Delivery Notice	NA	NA
Additional Fees and Surcharges
EFS Surcharge	NA
Block Surcharge	NA
Facilitation Desk Fee	$0.25

Exchange Fees for COMEX Short-Term Gold Option:

Exchange Fees
	Member Day	Member	Cross Division	Non-Member	IIP
Pit	$0.45	$0.70 (EOO $0.85)	$0.95	$1.45
Globex	$0.45	$0.70	$0.95	$1.45	NA
ClearPort		$0.70(EOO $0.85)		$1.45

Processing Fees
	Member	Non-Member
Cash Settlement	$0.90	$1.15
Futures from E/A	NA	NA
	House Acct	Cust Acct
Options E/A Notice	NA	NA
Delivery Notice	NA	NA

Additional Fees and Surcharges
EFS Surcharge	NA
Block Surcharge	NA
Facilitation Desk Fee	$0.25

Trading Hours:

Open Outcry:

Gold: Monday – Friday 8:20 a.m. – 1:30 p.m. (7:20 p.m. – 12:30 p.m. Chicago Time/CT).

Crude Oil and Natural Gas: Monday – Friday 9:00 a.m. – 2:30 p.m. (8:00 a.m. – 1:30 p.m. Chicago Time/CT).

CME Globex and CME ClearPort:

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).

For additional information, please contact Robert Biolsi at (212) 299-2610.

CME Group is the world’s leading derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs).
Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.

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Listing of Short-Term Options on Crude Oil, Natural Gas and Gold