• Change in Contract Size for Cleared OTC London Gold Forwards

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • SER-5930
      • Notice Date
      • 13 September 2011
      • Effective Date
      • 25 September 2011
    • Effective Sunday, September 25, 2011, for trade date Monday, September 26, 2011, please be advised that the New York Mercantile Exchange, Inc. (“NYMEX”) and Commodity Exchange, Inc. (“COMEX” and collectively “Exchanges”) will change the contract size and fee structure of the Cleared OTC London Gold Forwards contract. The contract size will change from the current 100 Troy Ounces to 0.001 Troy Ounces. There will be a waiver of clearing fees for the Cleared OTC London Gold Forwards contract until November 1, 2011 after which new fees will be imposed as indicated in the tables below. This contract is available for clearing on CME ClearPort.

       

      Please refer questions on this subject to:

       

      Energy & Metals Research:

      Joann Arena                           joann.arena@cmegroup.com                         212.299.2356

       

      Products & Services:

      Patricia Cauley                       patricia.cauley@cmegroup.com                    212.299.2346

       

       

       

       

       

      (Underscore indicates insertion, Strikethrough indicates deletion)

       

       

      334.01.             CONTRACT SPECIFICATIONS

      334.01.A. Unit of Clearing

      The unit of clearing shall be in minimum increments of 0.001 100 fine troy ounces of gold.

       

       

       

       

       

       

       

       

       

       

       

       

      Fees

      Cleared OTC London Gold Forwards

       

      For COMEX members:

       

      Tier

      Fee per ounce ($)

      Equivalent per 100 oz ($)

       

       

       

      T+1 (tom), T+2 (spot), T+3

      0.0010

      0.10

      T+4 to 2 months (from spot)

      0.0050

      0.50

      2 months to 6 months

      0.0070

      0.70

      6 months to 10 years

      0.0100

      1.00

       

      For members, the proposed minimum fee per trade is $2.00

       

       

      For non-members:

       

      Tier

      Fee per ounce ($)

      Equivalent per 100 oz ($)

       

       

       

      T+1 (tom), T+2 (spot), T+3

      0.0015

      0.15

      T+4 to 2 months (from spot)

      0.0075

      0.75

      2 months to  6 months

      0.0105

      1.05

      6 months to 10 years

      0.0150

      1.50

       

      For non-members, the proposed minimum fee per trade is $3.00

       

       

      Note:  “Tom” is short for tomorrow.