Unleaded Gas Futures and Options Trading

Unleaded Gas Contract Specifications

Trading Unit
Futures: 42,000 U.S. gallons (1,000 barrels).

Options: One NYMEX Division New York Harbor unleaded gasoline futures contract.

Price Quotation
Futures and Options: In dollars and cents per gallon, for example, $0.8522 (85.22¢) per gallon.

Trading Hours
Futures and Options: Open outcry trading is conducted from 10:05 A.M. until 2:30 P.M.

After hours futures trading is conducted via the NYMEX ACCESS® internet-based trading platform beginning at 3:15 P.M. on Mondays through Thursdays and concluding at 9:30 A.M. the following day. On Sundays, the session begins at 7:00 P.M. All times are New York time.

Trading Months
Futures: 12 consecutive months.
Options: 12 consecutive months.

Minimum Price Fluctuation
Futures and Options: $0.0001 (0.01¢) per gallon ($4.20 per contract).

Maximum Daily Price Fluctuation
Futures: $0.25 per gallon ($10,500 per contract) for all months. If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. When trading resumes, the limit is expanded by $0.25 per gallon in either direction. If another halt were triggered, the market would continue to be expanded by $0.25 per gallon in either direction after each successive five-minute trading halt. There will be no maximum price fluctuation limits during any one trading session.

Options: No price limits.

Last Trading Day
Futures: Trading terminates at the close of business on the last business day of the month preceding the delivery month.

Options: Expiration occurs three business days before the underlying futures contract.

Exercise of Options
By a clearing member to the Exchange clearinghouse not later than 5:30 P.M., or 45 minutes after the underlying futures settlement price is posted, whichever is later, on any day up to and including the option's expiration.

Options Strike Prices
Twenty strike prices in one-cent-per-gallon increments above and below the at-the-money strike price, and ten strike prices in five-cent increments 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 the nearest to the previous day's close of the underlying futures contract. Strike price boundaries are adjusted according to the futures price movements.

Delivery
F.O.B. seller's facility in New York Harbor ex-shore. All duties, entitlements, taxes, fees, and other charges paid. Requirements for seller's shore facility: capability to deliver into barges. Delivery may also be completed by pipeline, tanker, book transfer, or inter- or intra-facility transfer. Delivery must be made in accordance with applicable federal, state, and local licensing and tax laws.

Delivery Period
Deliveries may only be initiated the day after the fifth business day and must be completed before the last business day of the delivery month.

Alternate Delivery Procedure (ADP)
An alternate delivery procedure is available to buyers and sellers who have been matched by the Exchange subsequent to the termination of trading in the spot month contract. If buyer and seller agree to consummate delivery under terms different from those prescribed in the contract specifications, they may proceed on that basis after submitting a notice of their intention to the Exchange.

Exchange of Futures For, or in Connection with, Physicals (EFP)
The commercial buyer or seller may exchange a futures position for a physical position of equal quantity by submitting a notice to the Exchange. EFPs may be used to either initiate or liquidate a futures position.

Position Accountability
Any one month/all months: 7,000 net futures, but not to exceed 1,000 in the last three days of trading in the spot month.

Grade and Quality Specifications
Generally conforms to industry standards for Phase II Complex Model Reformulated Gasoline.

Trading Symbols
Futures: HU
Options: GO

Unleaded Gas Futures and Options

See Also: Unleaded Gas Futures and Options Special Report