Amadeusz Juskowiak

Nymex to submit propane proposal to cftc

The New York Mercantile Exchange expects to submit a propane futures contract for federal regulatory approval within a few days according to an exchange spokeswoman

As previously announced the Board of Governors of the exchange approved the contract last month The exchange will now submit the contract to the Commodity Futures Trading Commission according to the spokeswoman

Contract specifications will resemble those of heating oil and gasoline futures The contract size will be 1000 barrels or 42000 US gallons

The minimum price fluctuation for the propane futures contract will be 001 cent per gallon or 420 dlrs a barrel according to the exchange

The maximum daily price limit will be two cts a gallon on all contracts except spot Trading will terminate on the last business day of the month preceding the delivery month

The exchange said delivery will be FOB from the sellers pipeline storage or fractionation facility in Mont Belvieu Texas which has a direct pipeline access to the Texas Eastern Transmission Pipeline TET in Mont Beliview

Delivery method will be by inline or inwell transfer interfacility transfer or pumpover or book transfer and cannot be done earlier than the tenth calendar day of the delivery month according to the exchange Deliveries must be completed no later than two business days prior to the end of the delivery month

Buyers taking delivery of the propane must pay the seller by certified check and the deadline for payment is 1200 EST noon of the second business day following receipt of the propane