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Natural Gas Futures Specs

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

UNLEADED GAS FUTURES

Trading Unit  
10,000 million British thermal units (mmBtu).  
     
Price Quotation  
U.S. dollars and cents per mmBtu.  
       
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).
 
Off-Exchange transactions can be submitted solely for clearing to the NYMEX ClearPort® clearing website as an exchange of futures for swaps (EFS) or exchange of futures for physicals (EFP) transaction until 5:15 PM, Monday through Friday, and the day preceding a holiday.  
  
Trading Months  
The current year plus the next twelve years through December 2020. A new calendar year will be added following the termination of trading in the December contract of the current year.  On CME Globex®: The current year plus the next eight years.  
 
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  
$0.001 (0.1¢) per mmBtu ($10.00 per contract).  
 
Maximum Daily Price Fluctuation  
$3.00 per mmBtu ($30,000 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 $3.00 per mmBtu in either direction. If another halt were triggered, the market would continue to be expanded by $3.00 per mmBtu 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 three business days prior to the first calendar day of the delivery month.  
 
Settlement Type  
Physical.  
 
Delivery  
The Sabine Pipe Line Co. 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. Complete delivery rules and provisions are detailed in Chapter 220 of the Exchange Rulebook.  
 
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 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) or Swaps (EFS)  
The commercial buyer or seller may exchange a futures position for a physical position or a swaps position of equal quantity by submitting a notice to the Exchange. EFPs and EFSs may be used to either initiate or liquidate a futures position.  
 
Grade and Quality Specifications  
Pipeline specifications in effect at time of delivery.  Position Accountability Levels and Limits  Any one month/all months: 12,000 net futures, 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  
NG

NGT (TAS Code)

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