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| NYMEX ClearPort Clearing Overview |
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Market participants can negotiate their own transactions off of the Exchange
from a slate of more than 350 energy and metals futures and options contracts and post an exchange
of futures for swaps (EFS) or exchange of futures for physicals (EFP) transaction
directly to the NYMEX ClearPort clearing system. When the transactions are
submitted, margin requirements are calculated and the transactions are processed
by the clearinghouse in the same manner as the Exchange's core futures contracts.
NYMEX ClearPort clearing is available from 6:00 PM Sunday through 5:15 PM
Friday, with a 45-minute break between 5:15 PM and 6:00 PM on Mondays through
Thursdays.
The products that can be submitted for clearing include the same slate that
is available for trading, along with physically delivered futures contracts
for four domestic crude oils and three physically delivered electricity
futures contracts.
Submitting bilateral trades to the Exchange clearing system offers several
advantages over non-cleared business:
- A system of guarantees mitigates counterparty credit risk.
- Trades are processed by a neutral third party.
- More complete risk management is provided.
- Trades can be booked for longer terms and lesser risk of counterparty
default or bankruptcy.
- All positions are aggregated and margined according to the value at
risk as calculated by the SPAN system. Cross margining of offsetting
positions across markets can result in reduced margin obligations.
To ensure compliance with Exchange rules, market participants are advised
that they should retain in their business records the transaction documentation,
or at a minimum, the written confirmations of those transactions.
For specific information on each jurisdiction, please visit NYMEX
Jurisdiction Limitations |
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