Listing of Crude Oil Mid-Curve Option Contract

(This SER supersedes SER #7224 dated October 29, 2014 to reflect amended commodity codes.)

Effective Sunday, November 23, 2014, for trade date Monday, November 24, 2014, and pending all relevant CFTC regulatory review periods, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will list Crude Oil Mid-Curve Option contracts (codes LM1-LM5) for trading on the NYMEX trading floor and CME Globex and for submission for clearing via CME ClearPort.

The Exchange will list five consecutive mid-curve options that will expire on a June-December cycle.  Their expiration will align exactly with the first nearby June and December Crude Oil options (code LO).  While they have the same expiration as the first nearby June and December Crude Oil options, they will exercise into five Light Sweet Crude Oil Futures contracts on a deferred June-December cycle.  Specifically, the five mid-curve options will exercise into June or December Light Sweet Crude Oil Futures contracts for the next five consecutive contract years.  

For the June 2015 Crude Oil Mid-Curve Option (which will expire one the same day as the June 2015 Crude Oil Option, code LO), there will be five mid-curve options exercised as follows:

Mid-Curve Option          Underlying Light Sweet Crude Oil Futures

LM1                              June 2016

LM2                              June 2017

LM3                              June 2018

LM4                              June 2019

LM5                              June 2020

For the December 2015 Crude Oil Mid-Curve Option (which will expire on the same day as the December 2015 Crude Oil Option, code LO), there will be five mid-curve options exercised as follows:

Mid-Curve Option          Underlying Light Sweet Crude Oil Futures

LM1                              December 2016

LM2                              December 2017

LM3                              December 2018

LM4                              December 2019

LM5                              December 2020

Also concurrent with the launch of these contracts and pending all relevant CFTC regulatory review periods, the Exchange will permit block trading pursuant to Rule 526 (Block Trades) in these contracts at a block trade minimum threshold of five (5) contracts. 

CONTRACT SPECIFICATIONS

Trading and Clearing Hours:

CME Globex and CME ClearPort: Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m.

Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT).

NYMEX Trading Floor: Monday – Friday 9:00 a.m. – 2:30 p.m. (8:00 a.m. – 1:30 p.m. CT)

Please refer questions on this subject to:

Business Line Management

Jeff White                                 Jeff.White@cmegroup.com                               212.299.2325

Energy Research:

Dan Brusstar                             Daniel.Brusstar@cmegroup.com                        212.299.2604