The Exchange will accept OTC trades for clearing from 7:30 AM to 1:30 PM each business day.
Exchange President J. Robert Collins, Jr., said "Recent events in the energy markets have once again brought to the fore the urgency of mitigating counterparty risk for over-the-counter (OTC) transactions. The Exchange has a strong well-capitalized clearing organization, which is geared up to guarantee against default to market participants who wish to enter into fully negotiated transactions with trading partners of their own choosing. OTC clearing through the New York Mercantile Exchange brings an entirely new dimension of reliability to the marketplace and will also offer participants the opportunity to increase cash flow by reducing margins for offsetting positions in the futures and OTC markets. Energy market participants now have more choices than ever in seeking the risk management instruments and strategies that fulfill their needs in the most efficient, cost-effective way."
The slate of commonly traded OTC standard products based on terms and conditions listed by the Exchange will include:
- West Texas Intermediate calendar swaps contract will be available for 36 consecutive months in 1,000-barrel lots. The floating price is equal to the arithmetic average of each day's settlement of the first nearby NYMEX Division light sweet crude oil futures contract throughout the contract month.
- A Henry Hub swaps contract will be available for 36 consecutive months. The contract which will be financially settled, based on the final settlement price of the corresponding Henry Hub natural gas futures contract, will be 2,500 million British thermal units (mmBtu) multiplied by the number of calendar days in the month.
- A Henry Hub basis swap, which will be a financially settled contract based on the Platts Inside FERC Gas Market Report Henry Hub index price minus the final settlement price of the Henry Hub natural gas futures contract for the corresponding month. The trading unit will be 2,500 mmBtus multiplied by the number of calendar days in the month.
- A series of financially settled, natural gas basis swaps contracts for 36 consecutive months based on the differential between published index prices at various market centers minus the final settlement price of the Henry Hub natural gas futures contract for the corresponding contract month. The trading unit will be 2,500 mmBtus multiplied by the number of calendar days in the month. The market centers covered by the basis contracts will include: AECO C hub in Alberta, Canada; Chicago city gate; Houston Ship Channel; San Juan Basin; Southern California border; Transco Zone 6, Northwest Pipeline Rockies; and Panhandle Eastern Pipe Line Co. Texas-Oklahoma index.
- On-peak electricity will be offered for 36 consecutive months in lots of 400 megawatt hours (16 hours at 25 megawatts) multiplied by the number of on-peak days in the month. Contracts will cover physical delivery to the Pennsylvania-New Jersey-Maryland Interconnection-west, the Palo Verde Switchyard in Arizona, and non-federal hydroelectric projects or switchyards along the Columbia River in Washington state.
- New York Harbor heating oil crack spread calendar swaps will be offered for trading for six consecutive months in lots of 1,000 barrels. The floating price will be equal to the arithmetic average of the first nearby NYMEX Division heating oil futures settlement price minus the first nearby NYMEX Division light, sweet crude oil futures contract settlement price during the contract month.
- New York Harbor unleaded gasoline crack spread calendar swaps will be offered for trading for six consecutive months in lots of 1,000 barrels. The floating price will be equal to the arithmetic average of the first nearby NYMEX Division unleaded gasoline futures contract settlement price minus the first nearby NYMEX Division light, sweet crude oil futures contract settlement price during the contract month.
- U.S. Gulf Coast No. 2 oil crack spread calendar swaps will be offered for trading for six consecutive months in lots of 1,000 barrels. The floating price will be equal to the arithmetic average of Platts U.S. Gulf Coast pipeline No. 2 mean minus the first nearby NYMEX Division light, sweet crude oil futures contract settlement price for the contract month.
- U.S. Gulf Coast unleaded 87-octane gasoline crack spread calendar swaps contract will be offered for trading for six consecutive months in lots of 1,000 barrels. The floating price will be equal to the arithmetic average of Platts U.S. Gulf Coast pipeline unleaded 87 gasoline mean minus the first nearby NYMEX Division light sweet crude oil futures contract settlement price for the contract month.
- No. 2 heating oil up-down spread calendar swaps contract will be offered for six nearby months in 42,000-gallon lots. The floating price will be equal to the arithmetic average of Platts U.S. Gulf Coast No. 2 mean minus the first nearby NYMEX Division heating oil futures contract settlement during the contract month.
- Unleaded 87 up-down spread calendar swaps contract will be offered for six nearby months in 42,000-gallon lots. The floating price will be equal to the arithmetic average of Platts U.S. Gulf Coast unleaded 87 gasoline mean minus the first nearby NYMEX Division New York Harbor gasoline futures contract settlement during the contract month.
- Dubai crude oil calendar swaps contract will be offered for 36 consecutive months in 1,000-barrel lots. Financial settlement will be based on the arithmetic average of Platts Dubai frontline mean during the contract month.
- Light Louisiana Sweet crude oil futures contract delivered in St. James, Louisiana, in 1,000-barrel lots will be available for up to 18 months.
- West Texas Sour crude oil futures contract delivered in Midland, Texas, will be available for up to 18 months in 1,000-barrel lots.
- West Texas Intermediate crude oil delivered in Midland, Texas, in 1,000-barrel lots, will be available for up to 18 months.
- Mars Blend Crude oil delivered at the Louisiana Offshore Oil Platform facility in Clovelly, Louisiana, in 1,000-barrel lots, will be available for up to 18 months.
