NYMEX To Change Intra-Commodity Straddle Margins And Spread Credits On Western Electricity Contracts

The New York Mercantile Exchange will adjust the intra-commodity straddle margins and spread credit rates on its western electricity futures contracts at the close of business on Monday, December 6, to coincide with the splitting of the contract unit earlier that day. For clearing members, the intra-commodity straddle margin will be $200 for the first through sixth months; $100 for the seventh through 12th months, and $50 for the back months. Member rates will be $220 for the first through sixth months, $110 for the seventh through 12th months; and $55 for the back months. Customer rates will be $270 for the first through sixth months; $135 for the seventh through 12th months; and $67.50 for the back months. In addition, the inter-commodity spread credit will be 40% of the initial margin for California Oregon border electricity/Palo Verde electricity; Alberta natural gas/California Oregon border electricity; Henry Hub natural gas/Palo Verde electricity; Henry Hub natural gas/California Oregon border electricity; Permian Basin natural gas/Palo Verde electricity; and Permian Basin natural gas/California Oregon border electricity. At the start of business that day, the contract unit for the Exchange's western electricity futures contracts will be split from 864 megawatt hours to 432 and each outstanding futures and options contract will be converted into two contracts, reflecting the new rules. The contract will be delivered at a rate of one megawatt per hour instead of two.