NYMEX To Launch Four New Electricity Options Contracts

The New York Mercantile Exchange, Inc. today announced that it will list four new electricity options contracts for trading on the NYMEX trading floor and for clearing on NYMEX ClearPort® beginning on December 17 for trade date December 18.

The new contracts and their commodity codes are: ISO New England calendar month LMP swap options (OE), AEP-Dayton calendar month LMP swap options (OT), Cinergy calendar month LMP swap options (OY), and Northern Illinois calendar month LMP swap options (OU).

The contracts expire two business days prior to the start of the contract month and may be exercised any business day up to and including the expiration day.

Strike price intervals will be 20 strike prices in increments of $0.50 per megawatt hour above and below the at-the-money strike price, and the next 10 strike prices in increments of $1.00 above the highest and below the lowest existing strike prices for a total of at least 61 strike prices. The at-the-money strike price is nearest to the previous day' close of the underlying futures contract.

Floor trading fees will be $0.40 for members; $0.15 for member day trades; $1.35 for non-members, and $0.75 for COMEX members eligible for blended rates. Exchange of options for options fees will be $0.40 for members and $1.35 for non-members. Exercise fees will be $0.40 for house accounts and $0.85 for customer accounts. NYMEX ClearPort clearing fees will be $1.75 for members and $2.50 for non-members.