CME Launches Three New Petroleum Crack Options
Source: Commodity Online (7/9/09)
"CME Group. . .has announced. . .three new financially settled petroleum crack spread average price options contracts."
Trading will be available on the New York trading floor and clearing services will be available through CME ClearPort, a set of flexible clearing services open to over the counter (OTC) market participants to significantly mitigate counterparty risk and provide capital efficiencies across asset classes, beginning on July 19 for trade date July 20.
These contracts are listed by NYMEX, and are subject to NYMEX rules and regulations. The new average price options contracts and their commodity codes will be: heating oil crack spread (3W), RBOB crack spread (3Y), and gasoil crack spread (3U).
There will be 10 strike prices in increments of $0.25 per barrel above and below the "at-the-money" strike price, for a total of 21 strike prices. The contract will be 1,000 barrels in size with a minimum price fluctuation of $0.01 per barrel. The expiration date will be the last business day of the underlying month of the futures contract.
The gasoil-Brent crude oil crack spread options contract will be listed for 60 consecutive months, through June 2014; the heating oil-crude oil crack spread options contract will be listed for 36 consecutive months, through June 2012; and the RBOB-crude oil crack spread options contract will be listed for the current year plus three additional years, through December 2012.