Trading
Unit
Natural
Gas Futures:
10,000 million British thermal units
(MMBtu).
Trading
Months
Natural
Gas Futures: 36
consecutive months commencing with the
next calendar month (for example, on
October 2, 1998, trading occurs in all
months from November 1998 through October
2001). Options: 12 consecutive months,
plus 15, 18, 21, 24, 27, 30, 33, and 36
months on a June/December cycle.
Price
Quotation
Natural
Gas Futures:
Dollars and cents per MMBtu, for example,
$2.035 per MMBtu.
Minimum
Price Fluctuation
Natural
Gas Futures:
$0.001 (0.1 ¢) per MMBtu ($10 per
contract).
Maximum
Daily Price Fluctuation
Natural
Gas Futures:
$1.50 per MMBtu ($15,000 per contract) for
the first two months. Initial back month
limits of $0.15 (15¢) per MMBtu rise to
$0.30 (30¢) per MMBtu if the previous
day's settlement price in any back month
is at the $0.15 (15¢) limit. In the event
of a $0.75 (75¢) per MMBtu move in either
of the first two contract months, limits
on all months become $0.75 per MMBtu in
all months from the limit in place in the
direction of the move.
Last
Trading Day
Natural
Gas Futures:
Trading terminates three business days
prior to the first calendar day of the
delivery month.
Delivery
Sabine Pipe
Line Co.’s Henry Hub in Louisiana. Seller
is responsible for the movement of the gas
through the Hub; the buyer, from the Hub.
The Hub fee will be paid by seller.
Delivery
Period
Delivery
shall take place no earlier than the first
calendar day of the delivery month and
shall be completed no later than the last
calendar day of the delivery month. All
deliveries shall be made at as uniform as
possible an hourly and daily rate of flow
over the course of the delivery
month.
Alternate
Delivery
Period (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.
Quality
Specifications
Pipeline
specifications in effect at time of
delivery.
Position
Limits
7,000
contracts for all months combined, but not
to exceed 1,000 in the last three days of
trading in the spot month or 5,000 in any
one month.
Margin
Requirements
Margins are
required for open futures positions. The
margin requirement for an options
purchaser will never exceed the premium
paid.
Trading
Symbols
Natural
Gas Futures: NG
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