FRE 6431s Project

Mohammed Alshetwey's Project POLY ID 0349913

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FRE 6431Prof: Roy Freedman

“NYMEX”


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The New York Mercantile Exchange “NYMEX”

• (NYMEX) is the world's largest physical commodity futures exchange, located in New York City.

• NYMEX & the New York Commodities Exchange (COMEX), which were independent companies but are now merged.


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Cont..

• NYMEX Holdings listed on NYSE on November 17, 2006, under the ticker symbol NMX.

• NYMEX handles billions of $’s worth of energy products, metals, and other commodities being bought and sold on the trading floor and the overnight electronic trading computer systems.

• CFTC regulates the floor of the NYMEX.


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Commodities on NYMEX Crude oil Gasoline Gold Heating oil Natural gas Platinum Silver


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NYMEX Commodities Sympol

CommodityCommodity FuturesFutures OptionsOptions MiNYMiNY

Crude Oil CL LO QM

Natural Gas

NG ON QG


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COMEX Commodities Sympol

CommodityCommodity FuturesFutures OptionsOptions MiNYMiNY

GOLD GC OG QO

Silver SI SO QI


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Criteria of Futures Contract:

1- Commodity 2- Quantity3- Quality4- Month of Delivery5- Place of DeliveryNOTE: NYMEX insures that each

contract meets the above criteria.


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Trading Hours

1- Trading floor:From 9.00 AM to 2.30 PM

2- GLOBEX System:From 6.00 PM to 5.15 PM (next trading day).NOTE: 45 minutes break everyday.


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Type of traders:

• Out rights: A one legged, single sided trade.

• Spreads: an action of selling one contract and buying another one.

• Strip: buying or selling the same commodity for 72 month combination.


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Who are the clerk?

• Clerks are staffs in the exchange who facilitate trades to be made.

• Phone clerk: takes orders from brokerage firms.

• Screen clerk: Checks or enters broker’s trades.

• Runner: Moves order tickets on floor.• Point Clerk: Quotes futures market

for options trades.


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the Floor-Open outcry

• Rules of open outcry:• There must be at least three traders

present.• All trading must take place during

set trading hours.• The highest bid and lowest offer

must be recognized at all times.


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Trade Reporting System

1- The buy and sell traders fill in the trade data on their trading cards.

2- Within one minute after the trade, the sell trader tosses a sell card into the ring.

3- NYMEX employees time stamp the cards.4- A runner carries the cards to the chute

which sends them down to data entry.5- Data entry then enters the trades into

the trading management system (TMS)


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Price Trading System1- When a trade is made, the trader must

insure that a price reporter records the month and the price.

2- The price reporters stand in the ring and record the trade data on hand held.

3- the data is transmitted through wireless technology and displayed on the wallboard.

4- the data goes out on the ticker where it is picked up by vendors and transmitted their clients.


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CME Electronic Trading

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

2000 2002 2004 2006

PrivatelyNegotiatedOpen Outcry

CME Globex


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References:• www.nymex.com• http://inductive.net/fe/6431/sampleprojects/• http://en.wikipedia.org/wiki/NYMEX• Mr Jang and Mr Liao’s Project on NEMEX

2007• www.CFTC.gov• http://www.google.com/search?hl=en&q=com

ex&btnG=Search

http://www.nymex.com/

http://inductive.net/fe/6431/sampleprojects/

http://en.wikipedia.org/wiki/NYMEX

http://www.CFTC.gov/

http://www.google.com/search?hl=en&q=comex&btnG=Search

http://www.google.com/search?hl=en&q=comex&btnG=Search

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FRE 6431s Project