• Interim Alternative Final Settlement Methodology for NYMEX EIA On-Highway Diesel and Gasoline Futures and Related Average Price Option

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-6876
      • Notice Date
      • 16 October 2013
      • Effective Date
      • 14 October 2013
    • As a result of the U.S. federal government shutdown, U.S. Department of Energy’s Energy Information Administration (EIA) data, which is used to settle two NYMEX energy futures contracts and one option contract, is no longer available.  During this time, NYMEX will utilize the weekly Oil Price Information Service (OPIS) Retail Gasoline and Diesel Fuel Surcharge Index Report as the basis for the final settlement of the EIA Flat Tax On-Highway Diesel Futures (code A5), its related EIA Flat Tax On-Highway Average Price Option (code DAP), and EIA Flat Tax U.S. Retail Gasoline Futures (code JE) contracts.   These contracts are listed for trading on CME Globex and the NYMEX trading floor, and for submission for clearing on CME ClearPort.
       
      Pursuant to NYMEX Rule 701 (Declarations of Force Majeure), NYMEX has determined to implement interim alternative final settlement procedures for these contracts as detailed below.  
       
      • Effective starting on Monday, October 14, 2013 and continuing for each week during the government shutdown, NYMEX will utilize the weekly Oil Price Information Service (OPIS) Retail Gasoline and Diesel Fuel Surcharge Index Report as the basis for the final settlement of the EIA Flat Tax On-Highway Diesel Futures (code A5), its related EIA Flat Tax On-Highway Average Price Option (code DAP), and EIA Flat Tax U.S. Retail Gasoline Futures (code JE) contracts.   
      • The EIA Flat Tax On-Highway Diesel Futures (code A5), and the related Average Price Option (code DAP), will be settled utilizing the OPIS retail price reference for the entire USA under the heading “ULS Diesel (On-Highway)”. The EIA Flat Tax Retail Gasoline Futures (code JE), will be settled utilizing the OPIS retail price reference for the entire U.S. under the heading “Regular (Blended)” for both Conventional and Reformulated areas combined.
      • NYMEX will resume using EIA pricing after the government resumes operation, starting on the first Monday that the EIA officially resumes reporting its weekly retail pricing. NYMEX will use OPIS pricing as an interim replacement for EIA data for each week starting on October 14 and continuing until the first Monday that EIA resumes reporting its weekly price. NYMEX will not utilize any back-dated pricing from EIA for those weeks that it did not publish weekly retail pricing during the U.S. federal government shutdown. To clarify, NYMEX will only use EIA data that is released on its regularly scheduled Monday release date (i.e., each Monday of October 2013 and beyond) and back-dated pricing released by EIA, if any, will not be used as a component of the index used to compute final settlement for these products.
      Should you have any questions regarding this Special Executive Report, please contact: Dan Brusstar, Senior Director, Energy Research, 212-299-2604, Daniel.Brusstar@cmegroup.com
       
      For media inquiries concerning this Special Executive Report, please contact CME Group Corporate Communications at 312-930-3434 or news@cmegroup.com 

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