Commodity Futures and Strategic Investment Managers

FUTURES

OPTIONS

Trading Unit

1,000 U.S. barrels (42,000 gallons).

Price Quotation

U.S. dollars and cents per barrel.

Trading Hours (All times are New York time)

Open outcry trading is conducted from 10:00 AM until 2:30 PM.

After-hours futures trading is conducted via the NYMEX ACCESS® internet-based trading platform beginning at 3:15 PM on Mondays through Thursdays and concluding at 9:30 AM the following day. On Sundays, the session begins at 7:00 PM.

Trading Months

Thirty (30) consecutive months plus long-dated futures initially listed 36, 48, 60, 72, and 84 months prior to delivery.

Additionally, trading can be executed at an average differential to the previous day's settlement prices for periods of two to 30 consecutive months in a single transaction. These calendar strips are executed during open outcry trading hours.

Minimum Price Fluctuation

$0.01 (1¢) per barrel ($10.00 per contract).

Maximum Daily Price Fluctuation

$10.00 per barrel ($10,000 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 $10.00 per barrel in either direction. If another halt were triggered, the market would continue to be expanded by $10.00 per barrel 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 third business day prior to the 25th calendar day of the month preceding the delivery month. If the 25th calendar day of the month is a non-business day, trading shall cease on the third business day prior to the business day preceding the 25th calendar day.

Settlement Type

Physical.

Delivery

F.O.B. seller's facility, Cushing, Oklahoma, at any pipeline or storage facility with pipeline access to TEPPCO, Cushing storage, or Equilon Pipeline Co., by in-tank transfer, in-line transfer, book-out, or inter-facility transfer (pumpover).

Delivery Period

All deliveries are ratable over the course of the month and must be initiated on or after the first calendar day and completed by the last calendar 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.

Deliverable Grades

Specific domestic crudes with 0.42% sulfur by weight or less, not less than 37° API gravity nor more than 42° API gravity. The following domestic crude streams are deliverable: West Texas Intermediate, Low Sweet Mix, New Mexican Sweet, North Texas Sweet, Oklahoma Sweet, South Texas Sweet.

Specific foreign crudes of not less than 34° API nor more than 42° API. The following foreign streams are deliverable: U.K. Brent and Forties, and Norwegian Oseberg Blend, for which the seller shall receive a 30¢-per-barrel discount below the final settlement price; Nigerian Bonny Light and Colombian Cusiana are delivered at 15¢ premiums; and Nigerian Qua Iboe is delivered at a 5¢ premium.

Inspection

Inspection shall be conducted in accordance with pipeline practices. A buyer or seller may appoint an inspector to inspect the quality of oil delivered. However, the buyer or seller who requests the inspection will bear its costs and will notify the other party of the transaction that the inspection will occur.

Position Accountability Levels and Limits

Any one month/all months: 20,000 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

Trading Unit

One NYMEX Division light, sweet crude oil futures contract.

Price Quotation

U.S. dollars and cents per barrel.

Trading Hours (All times are New York time)

Open outcry trading is conducted from 10:00 AM until 2:30 PM.

Trading Months

Thirty (30) consecutive months, plus long-dated options at 36, 48, 60, 72, and 84 months out on a June/December cycle.

Minimum Price Fluctuation

$0.01 (1¢) per barrel ($10.00 per contract).

Maximum Daily Price Fluctuation

No price limits.

Last Trading Day

Trading ends three business days before the underlying futures contract.

Exercise of Options

By a clearing member to the Exchange clearinghouse not later than 5:30 PM or 45 minutes after the underlying futures settlement price is posted, whichever is later, on any day up to and including the options expiration.

Strike Prices

Twenty strike prices in increments of $0.50 (50¢) per barrel above and below the at-the-money strike price, and the next 10 strike prices in increments of $2.50 above the highest and below the lowest existing strike prices for a total of at least 61 strike prices. The at-the-money strike price is nearest to the previous day's close of the underlying futures contract. Strike price boundaries are adjusted according to the futures price movements.

Margin Requirements

Margins are required for open short options positions. The margin requirement for an options purchaser will never exceed the premium.

Trading Symbol