Nymex Announces Cost Incentive Program For Brent Trading

The board of directors of the New York Mercantile Exchange, Inc., this morning agreed to waive all clearing and exchange fees for its new Brent crude oil futures contract for the first year of trading and to offer rebates for three months on any light, sweet crude futures contract traded to offset a position in the Exchange Brent futures contract.

The rebates will be for up to 24 cents per side, depending on the type of trade, which can currently range from nine cents to $1.35 per side.

Exchange Executive Vice President Neal Wolkoff said, “These cost incentive programs, combined with the savings that can be realized through the reduced margin rates for carrying both futures contracts under the auspices of the same clearinghouse, will provide a compelling business case for using the New York Mercantile Exchange to trade Brent.”