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
|
