NEW YORK, Dec. 3 /PRNewswire-FirstCall/ -- The New York Mercantile
Exchange, Inc., a subsidiary of NYMEX Holdings, Inc. (NYSE: NMX), today
announced that it will introduce nine new natural gas delivery point pipe
options contacts on NYMEX ClearPort(R) and the NYMEX trading floor,
beginning on December 16 for trade date December 17.
The new pipe options contracts will be European style, financially
settled options. Upon expiration, a long call option will be settled by
adding the settlement price for the same delivery month of the Henry Hub
natural gas swap futures contract to the underlying NYMEX natural gas basis
swap futures contract less the strike price multiplied by 2,500 MMBtu, or
zero, whichever is greater. Upon expiration, the long put will be settled
by subtracting from the strike price the settlement price for the same
delivery month of the Henry Hub natural gas swap futures added to the
underlying NYMEX natural gas basis swap futures contract multiplied by
2,500 MMBtu, or zero, whichever is greater.
The new pipe options contracts and their commodity codes are: PGE
Citygate (CW); Alberta (PI); Northern Rockies (ZR); Transco Zone 6 (TZ);
Chicago Citygate (PY); Houston Ship Channel (PK); San Juan (PJ); SoCal
(ZN); and Panhandle (PU).
The contracts will be 2,500 MMBtu in size, with a minimum price
fluctuation of $0.001 per MMBtu. The contracts will be listed for 72
consecutive monthly expirations, with the first listed expiration month of
January 2008. The contracts expire on the termination day of the underlying
basis swap futures contracts.
There will be five strike prices in intervals of $0.01 per MMBtu above
and below the at-the-money strike price and will be adjusted according to
the futures price movements.
Information about fees is available on the NYMEX website at
Forward Looking and Cautionary Statements
This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act, with respect to
our future performance, operating results, strategy, and other future
events. Such statements generally include words such as could, can,
anticipate, believe, expect, seek, pursue, and similar words and terms, in
connection with any discussion of future results. Forward-looking
statements involve a number of assumptions, risks, and uncertainties, any
of which may cause actual results to differ materially from the
anticipated, estimated, or projected results referenced in forward-looking
statements. In particular, the forward-looking statements of NYMEX
Holdings, Inc., and its subsidiaries are subject to the following risks and
uncertainties: the success and timing of new futures contracts and
products; changes in political, economic, or industry conditions; the
unfavorable resolution of material legal proceedings; the impact and timing
of technological changes and the adequacy of intellectual property
protection; the impact of legislative and regulatory actions, including
without limitation, actions by the Commodity Futures Trading Commission;
and terrorist activities and international hostilities, which may affect
the general economy as well as oil and other commodity markets. We assume
no obligation to update or supplement our forward-looking statements.
SOURCE The New York Mercantile Exchange, Inc.