Nymex To Waive Fees For All Electricity Futures Contracts

The New York Mercantile Exchange, Inc., said yesterday that, beginning with the November 1 trading session, it will waive the fees associated with the trading and clearing of all financially settled electricity contracts through the end of the year. Exchange fees, clearing fees, and cash settlement fees will be waived for the PJM daily, weekly, and monthly electricity futures contracts; the New York Independent System Operator (NYISO) electricity futures contracts for Zones A, G, and J; and the Dow Jones electricity price index futures contracts for Mid–Columbia, North Path 15, South Path 15, and Palo Verde.

The waivers will coincide with the listing of the PJM monthly electricity futures contract exclusively on NYMEX ClearPort^sm. Currently, the contract trades via open outcry during the day and on NYMEX ClearPort^sm after hours. Transactions can also be submitted solely for clearing via NYMEX ClearPort^sm nearly around the clock.

In addition, the liquidity incentive program to trade electricity futures on NYMEX ClearPort^sm has been amended so that, while liquidity providers will continue to be rewarded for posting bids and offers, customers will no longer pay to take the other side of the trade. The incentives for each contract are: PJM monthly futures, $1.20; PJM weekly futures, $0.32; PJM daily futures, $0.08; NYISO futures for Zones A, G, and J, $1.00; Dow Jones electricity price index futures, $1.44.

Exchange President James E. Newsome said, "The Exchange has taken these steps as part of its plan to consolidate electricity futures activity into a single venue, expanding upon a liquidity base of 67,000 lots of open interest, including 31,000 in the financially settled monthly PJM electricity futures contract."