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Heating Oil Futures Specs

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Futures Contract Specifications
   
The heating oil contract specifications tell you how the heating oil futures trade, not how to trade to heating oil futures. Before you consider opening a commodity futures account, you should consult with a licensed commodities broker.

HEATING OIL FUTURES

Trading Unit   
42,000 U.S. gallons (1,000 barrels).  
 
Price Quotation
U.S. dollars and cents per gallon.  
       
Trading Hours (All times are New York Time)  
Open outcry trading is conducted from 9:00 AM until 2:30 PM.Electronic trading is conducted from 6:00 PM until 5:15 PM via the CME Globex® trading platform, Sunday through Friday. There is a 45-minute break each day between 5:15PM (current trade date) and 6:00 PM (next trade date).  
 
Trading Months  
36 consecutive months.  
Trading at Settlement (TAS)  
Trading at settlement is available for the front two months except on the last trading day and is subject to the existing TAS rules. Trading in all TAS products will cease daily at 2:30 PM Eastern Time. The TAS products will trade off of a "Base Price" of 100 to create a differential (plus or minus) in points off settlement in the underlying cleared product on a 1 to 1 basis. A trade done at the Base Price of 100 will correspond to a "traditional" TAS trade which will clear exactly at the final settlement price of the day.  
 
Minimum Price Fluctuation  
$0.0001 (0.01¢) per gallon ($4.20 per contract).  
Maximum Daily Price Fluctuation  
$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.  
 
Last Trading Day  
Trading terminates at the close of business on the last business day of the month preceding the delivery month.  
Settlement Type  
Physical.  
 
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. Buyer may request delivery by truck, if available at the seller's facility, and pays a surcharge for truck delivery. 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. Complete delivery rules and provisions are detailed in Chapter 150 of the Exchange Rulebook.  
 
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 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.  
 
Grade and Quality Specifications  
Generally conforms to industry standards for fungible No. 2 heating oil.  
 
Inspection  
The buyer may request an inspection for grade and quality or quantity for all deliveries, but shall require a quantity inspection for a barge, tanker, or inter-facility transfer. If the buyer does not request a quantity inspection, the seller may request such inspection. The cost of the quantity inspection is shared equally by the buyer and seller. If the product meets grade and quality specifications, the cost of the quality inspection is shared jointly by the buyer and seller. If the product fails inspection, the cost is borne by the seller.  
 
Position Accountability Levels and 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.  
 
Margin Requirements  
Margins are required for open futures positions.  
 
Trading Symbol  
HO
HOT (TAS Code)

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