SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested 

Registered Entity Identifier Code (optional): 23-410

Organization: New York Mercantile Exchange, Inc. ("NYMEX")

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): 11/06/23 Filing Description: Delisting of Two (2) Crude Oil 

Futures Contracts

SPECIFY FILING TYPE 

Please note only ONE choice allowed per Submission.

Organization Rules and Rule Amendments

Certification § 40.6(a)

Approval § 40.5(a)

Notification § 40.6(d)

Advance Notice of SIDCO Rule Change § 40.10(a)

SIDCO Emergency Rule Change § 40.10(h)

Rule Numbers: 

New Product Please note only ONE product per Submission.

Certification § 40.2(a) 

Certification Security Futures § 41.23(a)

Certification Swap Class § 40.2(d)

Approval § 40.3(a)

Approval Security Futures § 41.23(b)

Novel Derivative Product Notification § 40.12(a)

Swap Submission § 39.5

Product Terms and Conditions (product related Rules and Rule Amendments)

Certification § 40.6(a) 

Certification Made Available to Trade Determination § 40.6(a)

Certification Security Futures § 41.24(a)

Delisting (No Open Interest) § 40.6(a) 

Approval § 40.5(a)

Approval Made Available to Trade Determination § 40.5(a)

Approval Security Futures § 41.24(c)

Approval Amendments to enumerated agricultural products § 40.4(a), § 40.5(a)

“Non-Material Agricultural Rule Change” § 40.4(b)(5)

Notification § 40.6(d)

Official Name(s) of Product(s) Affected: See filing.

Rule Numbers: See filing.
20 S. Wacker Drive Chicago, IL 60606 T 312 466 7478 tim.elliott@cmegroup.com cmegroup.com

1

Timothy Elliott

Managing Director and Chief Regulatory Counsel

Legal Department

November 6, 2023

VIA ELECTRONIC PORTAL

Mr. Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

Re: CFTC Regulation 40.6(a) Certification. Delisting of Two (2) Crude Oil Futures

Contracts.

NYMEX Submission No. 23-410

Dear Mr. Kirkpatrick:

New York Mercantile Exchange, Inc. (“NYMEX” or “Exchange”) is certifying to the Commodity Futures 

Trading Commission (“CFTC” or “Commission”) the delisting of two (2) crude oil futures contracts as set 

forth in the table below (the “Contracts”) effective immediately. There is no open interest in the Contracts.

 

Contract Title Commodity 

Code

Rulebook 

Chapter

LOOP Sour Crude Oil Storage Futures LPS 210

LOOP Gulf Coast Sour Crude Oil Futures MB 506

The Contracts are being delisted for trading on CME Globex electronic trading platform (“CME Globex”) as 

well as for submission for clearing via CME ClearPort.

Exhibit A provides amendments to NYMEX Rulebook Chapters in blackline format.

As a result of the delisting, information regarding the Contracts has been deleted from the respective 

product rulebook chapters, related position limits in the Position Limit, Position Accountability and 

Reportable Level Table located in the Interpretations and Special Notices Section of Chapter 5 (“Trading 

Qualifications and Practices”) of the NYMEX Rulebook (the “Table”), the CME Globex non-reviewable 

ranges located in Rule 588.H. of the NYMEX Rulebook, and the list of block-eligible products located on 

the CME Group website. The Table is attached under separate cover, in blackline format, as Exhibit B.

The Exchange reviewed the designated contract market core principles (“Core Principles”) as set forth in 

the Commodity Exchange Act (“CEA” or “Act”) and identified that the following Core Principles may be 

impacted by this initiative as follows:

• Emergency Authority: There is no open interest in the Contracts, and therefore there will be no 

market disruption related to the delisting. 
20 S. Wacker Drive Chicago, IL 60606 T 312 466 7478 tim.elliott@cmegroup.com cmegroup.com

2

• Availability of General Information: The Exchange will make publicly available the details of the 

delisting by publishing a Special Executive Report (“SER”) to the marketplace. The SER will be 

available on CME Group’s website.

Pursuant to Section 5c(c) of the Act and CFTC Regulation 40.6(a), the Exchange hereby certifies that the 

delisting of the Contracts complies with the Act, including regulations under the Act. There were no 

substantive opposing views to this proposal.

The Exchange certifies that this submission has been concurrently posted on the Exchange’s website at

http://www.cmegroup.com/market-regulation/rule-filings.html.

Should you have any questions concerning the above, please e-mail 

CMEGSubmissionInquiry@cmegroup.com or contact the undersigned at (312) 466-7478. 

Sincerely,

/s/ Timothy Elliott

Managing Director and Chief Regulatory Counsel

Attachments: Exhibit A – Amendments to NYMEX Rulebook Chapters (blackline format) 

Exhibit B – Position Limit, Position Accountability, and Reportable Level Table in Chapter 

 5 of the NYMEX Rulebook (attached under separate cover) (blackline format) 

 
3

EXHIBIT A

NYMEX Rulebook

(deletions struck through)

Chapter 210 

LOOP Crude Oil Storage Futures

210100. SCOPE OF CHAPTER

This chapter is limited in application to LOOP Crude Oil Storage futures contracts for the legal right 

to store crude oil at the Louisiana Offshore Oil Port (owned and operated by LOOP LLC, referred to 

herein as “LOOP”). The procedures for trading, clearing, delivery and settlement not specifically 

covered herein or in Chapter 7 shall be governed by the general rules of the Exchange.

The provisions of these rules shall apply to a “Capacity Allocation Contract” (CAC) which shall be 

used for delivery on the Exchange for the legal right to use designated LOOP Sour Storage capacity 

(“LOOP Sour Storage” as defined in the LOOP LLC Port Complex Terms and Conditions of Service 

and the LOOP LLC Clovelly Hub Terminalling Services – Connecting Carrier Receipts Terms and 

Conditions of Service (LOOP Terms and Conditions)) in the quantity of 1,000 barrels of LOOP Sour 

type crude oil (“LOOP Sour” as defined by NYMEX Rule 50610) for a specified calendar month.

210101. CONTRACT SPECIFICATIONS

The term “Capacity Allocation Contract” (CAC) shall refer to the legal right to use designated LOOP 

Sour Storage capacity, or any other storage facility designated by LOOP LLC, near Galliano, 

Louisiana for a specified calendar month, in accordance with the LOOP Terms and Conditions. Each 

CAC shall be in the quantity of 1,000 barrels of LOOP Sour deliverable in satisfaction of futures 

contract delivery obligations under this rule.

The terms “seller” and “buyer” shall mean the seller of the CAC and the buyer of the CAC, 

respectively.

For purposes of these rules, unless otherwise specified, times referred to herein shall refer to and 

indicate New York time.

210102. TRADING SPECIFICATIONS

Trading in LOOP Crude Oil Storage futures is regularly conducted in all calendar months. The 

number of months open for trading at a given time shall be determined by the Exchange.

210102.A. Trading Schedule

The hours for trading shall be determined by the Exchange.

210102.B. Trading Unit

The unit of trading shall be one Capacity Allocation Contract in the quantity of 1,000 U.S. barrels of 

LOOP Sour.

210102.C. Price Increments 

The minimum price fluctuation shall be $0.001 (0.1 cent) per barrel of storage capacity. Prices shall 

be quoted in dollars and cents per barrel. There shall be no maximum price fluctuation.

210102.D. Position Limits, Exemptions, Position Accountability and Reportable Levels

The applicable position limits and/or accountability levels, in addition to the reportable levels, are set 

forth in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations 

& Special Notices Section of Chapter 5. 

A Person seeking an exemption from position limits for bona fide commercial purposes shall apply 

to the Market Regulation Department on forms provided by the Exchange, and the Market Regulation 

Department may grant qualified exemptions in its sole discretion.

Refer to Rule 559 for requirements concerning the aggregation of positions and allowable 

exemptions from the specified position limits.
4

210102.E. Termination of Trading

No trades in the expiring contract month shall be made after the third business day prior to the twentyfifth calendar day of the month preceding the delivery month for such expiring contract. If the twentyfifth calendar day of the month is a non-business day, trading shall cease on the third business day 

prior to the last business day preceding the twenty-fifth calendar day of the month preceding the 

delivery month. In the event that the official Exchange holiday schedule changes subsequent to the 

listing of a LOOP Crude Oil Storage futures contract month, the originally listed expiration date shall 

remain in effect. In the event that the originally listed expiration date is declared a holiday, expiration 

will move to the business day immediately prior. Any contracts remaining open after the last day of 

trading must be either:

(a) Settled by delivery which shall take place no later than three business days after the final day of 

trading; or

(b) Liquidated by means of a bona fide Exchange of Futures for Related Position (“EFRP”) pursuant

to Rule 538. An EFRP is permitted at any time before 2:00 p.m. on the first business day 

following termination of trading in an expired futures contract, provided, however, that an EFRP 

which establishes a futures position for either the buyer or the seller shall not be permitted on 

the first business day following the expired contract.

210103. DELIVERY

The seller shall provide to the buyer a CAC which is free of all liens, fees, and other expenses. The 

buyer shall agree to abide by the LOOP Terms and Conditions and LOOP LLC Clovelly Hub 

Terminalling Services – Connecting Carrier Receipts Terms and Conditions of Service, as specified 

by LOOP LLC.

210104. DELIVERY PROCEDURES

210104.A. Notice of Intention to Deliver and Notice of Intention to Accept

1. Notice of Intention to Deliver

Exchange clearing members having open short positions shall provide the Clearing House with a 

Notice of Intention to Deliver by 3:00 p.m. on the first business day after the final day of trading. The 

Notice of Intention to Deliver must be in the form prescribed by the Exchange, and must be properly 

completed, including the name(s) of the seller(s), and the number of contracts to be delivered. The 

seller(s) shall also provide any additional information as may be required by the Exchange. 

2. The Notice of Intention to Accept 

Exchange clearing members having open long positions shall provide the Clearing House with a 

Notice of Intention to Accept delivery by 3:00 p.m. on the first business day after the final day of 

trading. The Notice of Intention to Accept must be in the form prescribed by the Exchange, and must 

be properly completed and indicate the name(s) of the buyer(s), the number of contracts to be 

accepted, and any additional information as may be required by the Exchange.

210104.B. Notice Day

1. The Clearing House shall allocate Notices of Intention to Deliver and Notices of Intention to 

Accept by matching the expired positions. On the morning of the second business day after the 

final day of trading, the Clearing House shall provide Assignment Allocation Notices to the 

respective clearing members. The day on which the Assignment Allocation Notices are provided 

to the clearing members shall be referred to as the “Notice Day”. The Notice Day shall be the 

second business day after the final day of trading. 

2. The Notices of Intention to Deliver and the Notices of Intention to Accept are not transferable.

210104.C. Final Settlement Price 

The final settlement price shall be the basis for delivery. 

210105. TIMING OF DELIVERY 

The seller shall provide to the buyer the CAC on the third business day after the last trading day. 

Delivery shall be in accordance with the terms and conditions of the CAC, which will provide the right 

to store crude oil for the calendar month starting on the first day of the delivery month and shall 

extend through the last calendar day of the delivery month. 

Transfer of Rights - The transfer of all rights to use LOOP Sour Storage capacity under a CAC shall 

be passed between buyer and seller upon delivery of the CAC from seller to buyer. 
5

210106. DELIVERY MARGINS AND PAYMENT

210106.A. Definitions

For the purposes of this Rule, "Payment Date" shall be four business days after the last trading day. 

210106.B. Payment

No later than 12:00 p.m. on the business day prior to the Payment Date, the seller shall advise its 

clearing member of the name and address of the bank, and the name of the account to which 

payment shall be made. The clearing member shall advise the opposite clearing member who shall 

advise the buyer. On the Payment Date, the buyer shall pay the short contract value by federal funds 

wire transfer to the account of the seller at the bank nominated by the seller. The term "contract 

value" shall mean the amount equal to the settlement price on the last day of trading in a futures 

contract times one thousand (1,000) times the number of contracts to be delivered. 

No later than 12:00 p.m. on the Payment Date, the buyer shall advise its clearing member of the 

federal funds wire transfer number and the name of the sending bank. The clearing member 

representing the buyer shall advise the opposite clearing member who shall similarly advise the 

seller. 

No later than the business day following the Payment Date, the seller shall advise its clearing member 

of receipt of payment, who shall deliver a notice of payment to the clearing member representing the 

buyer and the Clearing House no later than the business day following the Payment Date. Upon 

receipt of such notice, the delivery shall be complete, and margins shall be returned on the business 

day following notification to the Exchange that payment has been completed. 

210107. VALIDITY OF DOCUMENTS 

The Exchange makes no representation respecting the authenticity, validity or accuracy of any 

document, including the Notice of Intention to Deliver, the Notice of Intention to Accept, CACs, or any 

document delivered pursuant to these rules.

210108. DISCLAIMER

LOOP IS A TRADEMARK OF LOOP LLC AND HAS BEEN LICENSED FOR USE BY THE NEW 

YORK MERCANTILE EXCHANGE, INC. (“NYMEX”) AND ITS AFFILIATES. LOOP LLC AND 

NYMEX DO NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF DATA ASSOCIATED 

WITH THE NYMEX CONTRACT. NYMEX, ITS AFFILIATES AND LOOP LLC MAKE NO 

WARRANTIES, EXPRESS OR IMPLIED, AS TO THE RESULTS TO BE OBTAINED BY ANY 

PERSON OR ENTITY FROM ANY USE OF THE NYMEX CONTRACT INCLUDING FROM 

TRADING BASED ON THE NYMEX CONTRACT OR DATA ASSOCIATED WITH THE NYMEX 

CONTRACT. NYMEX, ITS AFFILIATES AND LOOP MAKE NO WARRANTIES, EXPRESS OR 

IMPLIED, AND HEREBY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS 

FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE NYMEX CONTRACT OR ANY 

DATA GENERATED THEREFROM OR USED TO DERIVE VALUATIONS FOR THE NYMEX 

CONTRACT. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL NYMEX, ITS 

AFFILIATES OR LOOP HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, 

PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF 

NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGE.
6

Chapter 506

LOOP Gulf Coast Sour Crude Oil Futures

506100. SCOPE OF CHAPTER

This chapter is limited in application to LOOP Gulf Coast Sour Crude Oil futures. The procedures for 

trading, clearing, delivery and settlement not specifically covered herein or in Chapter 7 shall be 

governed by the general rules of the Exchange. The provisions of these rules shall apply to crude oil 

bought or sold for future delivery on the Exchange with delivery in Clovelly, Louisiana. The terms 

“seller” and “buyer” shall mean the seller of the physical product and the buyer of the physical product, 

respectively. For purposes of these rules, unless otherwise specified, times referred to herein shall 

refer to and indicate New York time. 

506101. CONTRACT SPECIFICATIONS

The contract grade for delivery on futures contracts shall be “LOOP Sour” type crude oil which shall 

meet the following designations and shall be deliverable in satisfaction of futures contract delivery 

obligations under this rule: 

506101.A. Deliverable Domestic Crude Streams

Poseidon and Mars blend type crude oil streams shall be delivered in accordance with the standard 

operating procedures used by the Louisiana Offshore Oil Port (owned and operated by LOOP LLC, 

referred herein as LOOP). Fungible blends of Poseidon and Mars blend type crude oil streams shall 

be deliverable under this contract.

506101.B. Deliverable Foreign Crude Streams 

1. Foreign crude oil from LOOP LLC’s Segregation 17 (Seg 17) stream is deliverable in accordance 

with the standard operating procedures used by LOOP LLC;

2. In the event that a Federal U.S. Superfund tax and/or Oil spill tax is in effect at the time of delivery 

for foreign crude oil, the buyer shall reimburse seller for all such taxes as had been or will be paid by 

the seller. 

Fungible blends of foreign crude oil streams or blends of foreign and domestic crude oil streams shall 

be deliverable under this contract.

506102. TRADING SPECIFICATIONS

Trading in LOOP Gulf Coast Sour Crude Oil futures is regularly conducted in all calendar months. 

The number of months open for trading at a given time shall be determined by the Exchange.

506102.A. Trading Schedule 

The hours for trading shall be determined by the Exchange.

506102.B. Trading Unit 

The contract unit shall be 1,000 U.S. barrels (42,000 U.S. gallons). Except for delivery made by 

book-out, in-tank transfer, or in-line transfer pursuant to Section 104, a tolerance of two percent (2%) 

above or below (1020 U.S. Barrels or 980 U.S. Barrels) the contract unit is permitted. All volumes 

shall be determined at 60 degrees Fahrenheit.

506102.C. Price Increments 

The minimum price fluctuation shall be $0.01 (1 cent) per barrel. Prices shall be quoted in dollars 

and cents per barrel. 

506102.D. Position Limits, Exemptions, Position Accountability and Reportable Levels

The applicable position limits and/or accountability levels, in addition to the reportable levels, are set 

forth in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations

& Special Notices Section of Chapter 5. A Person seeking an exemption from position limits for bona 

fide commercial purposes shall apply to the Market Regulation Department on forms provided by the 

Exchange, and the Market Regulation Department may grant qualified exemptions in its sole 

discretion. Refer to Rule 559 for requirements concerning the aggregation of positions and allowable 

exemptions from the specified position limits.

506102.E. Termination of Trading

No trades in LOOP Gulf Coast Sour Crude Oil futures in the expiring contract month shall be made 

after the third business day prior to the twenty-fifth calendar day of the month preceding the delivery 
7

month for such expiring contract. If the twenty-fifth calendar day of the month is a non-business day, 

trading shall cease on the third business day prior to the last business day preceding the twenty-fifth 

calendar day of the month preceding the delivery month. Any contracts remaining open after 

termination of trading must be either:

(c) Settled by delivery which 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; or

(d) Liquidated by means of a bona fide Exchange for Related Position (“EFRP”) pursuant to Rule 

538. An EFRP is permitted in an expired futures contract at any time before 2:00 p.m. on the 

first business day following termination of trading in the expired futures contract. An EFRP which 

establishes a futures position for either the buyer or the seller in an expired futures contract shall 

not be permitted following the termination of trading of an expired futures contract.

506103. RESERVED

506104. DELIVERY

Delivery shall be made free-on-board (“F.O.B.”) LOOP LLC’s storage cavern designated for LOOP 

Sour Storage, or any other storage facility designated by LOOP LLC, at Clovelly, Louisiana. Delivery 

shall be made in accordance with LOOP’s Port Complex Terms and Conditions of Service and/or 

Clovelly Hub Terminalling Services – Connecting Carrier Receipts Terms and Conditions of Service, 

as published and revised from time to time and available at www.loopllc.com or upon request. 

Delivery shall be made in accordance with all applicable Federal executive orders and all applicable 

Federal, State and local laws and regulations. For the purposes of this rule, the term F.O.B. shall 

mean a delivery in which the seller: (1) provides crude oil to the point of connection between LOOP 

LLC’s facilities and the buyer’s outgoing pipeline or storage facility which is free from all import duties, 

liens, encumbrances, unpaid taxes, fees and other charges; (2) retains title to and bears the risk of 

loss for the product to the point of connection between the buyer’s outgoing and the seller’s incoming 

pipeline or storage facility. At buyer’s option and expense, such delivery shall be made by any of the 

following methods: (1) by intrafacility or interfacility transfer (“pumpover”) into a designated storage 

facility or pipeline; or (2) by in-line transfer, in-system transfer, or by in-tank transfer of title to the 

buyer without physical movement of product, if the facility allows such transfer.

506105. DELIVERY PROCEDURES

506105.A. Responsibilities of Clearing Members Having Open Long Positions

1. Notice of Intention to Accept 

Exchange clearing members having open long positions shall provide the Clearing House with a 

Notice of Intention to Accept delivery by 3:00 p.m. on the first business day after the final day of 

trading. The Notice of Intention to Accept must be in the form prescribed by the Exchange, and must 

be properly completed and indicate the name(s) of the buyer(s), the number of contracts to be 

accepted and any additional information as may be required by the Exchange. 

2. Delivery Instructions 

On the first business day following Notice Day, the buyer’s clearing member shall provide the seller’s 

clearing member and the Exchange with properly completed Delivery Instructions in the form 

prescribed by the Exchange. Such Delivery Instructions must include the following information:

a. Name of seller’s clearing member; 

b. Tender Number; 

c. Name of the seller(s)' designated crude oil stream (either a specific foreign crude oil stream or 

domestic crude oil) specified in the Notice of Intention to Deliver; 

d. Name of incoming pipeline or storage facility specified in the Notice of Intention to Deliver; 

e. Number of contracts; 

f. Method of delivery (which must be a ratable delivery and conform to the normal capabilities of the 

facility named in the Notice of Intention to Deliver with respect to the manner of delivery and the 

quantity to be delivered); 

g. Name of the outgoing pipeline or storage facility with access to the incoming pipeline or storage 

facility designated in the Notice of Intention to Deliver (buyer(s) must confirm access with the 

incoming pipeline or storage facility designated in the Notice of Intention to Deliver); 

h. For inter-facility transfers, name of receiving facility with access to the facility designated in the 

Notice of Intention to Deliver; and 

i. Any additional information as may be required by the Exchange. 

506105.B. Responsibilities of Clearing Members Having Open Short Positions

1. Notice of Intention to Deliver
8

Exchange clearing members having open short positions shall provide the Clearing House with a 

Notice of Intention to Deliver by 3:00 p.m. on the first business day after the final day of trading. The 

Notice of Intention to Deliver must be in the form prescribed by the Exchange, and must be properly 

completed, indicate the name(s) of the seller(s), the number of contracts to be delivered and whether 

the designated crude oil stream shall be domestic or a specific foreign crude oil stream. The seller(s) 

shall designate qualified pipeline or storage facility, and shall also provide any additional information 

as may be required by the Exchange. 

2. Scheduling Notice 

As soon as possible following determination of scheduling, but no later than the last business day of 

the month preceding the delivery month, the seller’s clearing member shall provide the buyer’s 

clearing member and the Exchange with a Scheduling Notice in the form prescribed by the Exchange 

which must state the delivery time. 

506105.C. Amendment of Delivery Instructions 

Notwithstanding the foregoing, at any time prior to the last business day of the month preceding the 

delivery month, the buyer(s) and the seller(s) may, by mutual agreement, elect to change the delivery 

terms with respect to the method of delivery, the timing of delivery, the type and/or quality of crude

oil to be delivered and the designation of buyer's and/or seller's facility. Any such change must be 

made on the form prescribed by the Exchange. Any changes made with respect to the foregoing 

must be made in conformance with all contract requirements and specifications.

506105.D. Final Settlement Price 

The final settlement price as determined on the last trading day of the expiring contract month shall 

be the basis for delivery. 

506105.E. Notice Day

The Clearing House shall allocate Delivery Notices and Notices of Intention to Accept by matching 

size of positions and considering the type of sour crude oil by origin to the extent possible. On the 

morning of the next business day, the Clearing House shall provide copies of the notices to the 

respective clearing members. The day on which the notices are provided to the clearing members 

shall be referred to as the Notice Day. The Notice Day shall be the second business day after the 

final day of trading.

506105.F. Non-Transferable

The clearing member who receives a Delivery Notice or a Notice of Intention to Accept from the 

Clearing House shall be deemed to have agreed to accept or deliver product. Delivery Notices or 

Notices of Intention to Accept are not transferable

506106. TIMING OF DELIVERY

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. It is the obligation of the seller’s 

clearing member to ensure that the seller’s crude oil receipts, including each specific foreign crude 

oil stream, if applicable, are available to begin flowing ratably, to the extent possible, in Clovelly, 

Louisiana by the first day of the delivery month, subject to LOOP LLC’s or the pipeline’s scheduling

practices. The timing of delivery shall be determined by either LOOP LLC‘s or the pipeline’s 

scheduler. The buyer and seller can mutually agree to the delivery timing, subject to the LOOP LLC’s 

or the pipeline’s schedule for delivery. 

Transfer of Title — The seller shall provide the buyer with a pipeline ticket, any other quantitative 

certificates and all appropriate documents upon receipt of payment. 

The seller shall provide preliminary confirmation of title transfer at the time of delivery in electronic 

format or other appropriate form of documentation.

506107. DELIVERY MARGIN AND PAYMENT

506107.A. Definitions

For the purposes of this Section 107, “Payment Date" shall mean the twentieth day of the month 

following the delivery month or if such date is a Saturday or an Exchange or New York bank holiday 

other than Monday, payment shall be made on the preceding day which is not an Exchange or New 

York bank holiday. If such day is a Sunday or an Exchange or New York bank holiday which occurs 

on a Monday, payment shall be made on the next day which is not an Exchange or New York bank 

holiday.

506107.B. Margin 

On the third business day following the last day of trading, the clearing member shall obtain from any 

buyer margin equal to the full value of the product to be delivered, and the clearing member shall 

obtain from any seller margin in an amount fixed, from time to time, by the Exchange. The buyer’s 
9

clearing member and the seller’s clearing member shall deposit with the Clearing House margins in 

such amounts and in such form as required by the Exchange. Such margins shall be returned on 

the business day following notification to the Exchange that delivery and payment have been 

completed.

506107.C. Payment 

No later than 12:00 p.m. on the third business day prior to the Payment Date, the seller shall advise 

its clearing member of the name and address of the bank, and the name of the account to which 

payment shall be made. The clearing member shall advise the opposite clearing member who shall 

advise the buyer. On the Payment Date, the buyer shall pay the short contract value by federal funds 

wire transfer to the account of the seller at the bank nominated by the seller. The term "contract 

value" shall mean the amount equal to the settlement price on the last day of trading in a futures 

contract times one thousand (1,000) times the number of contracts to be delivered.

No later than 12:00 p.m. on the Payment Date, the buyer shall advise its clearing member of the 

federal funds wire transfer number and the name of the sending bank. The clearing member 

representing the buyer shall advise the opposite clearing member who shall similarly advise the 

seller. 

Any payment made on the Payment Date shall be based on volume actually delivered, as determined 

at sixty (60) degrees Fahrenheit. If quantitative results are unavailable prior to the time established 

in the rules for payment of product, a pro-forma payment based on 1,000 U.S. barrels per contract 

shall be made. Payment adjustments based on the actual quantity transferred shall be completed 

by 12:00 p.m. on the fifth business day after initial payment.

No later than the business day following the Payment Date, the seller shall advise its clearing member 

of receipt of payment, who shall deliver a notice of payment to the clearing member representing the 

buyer and the Clearing House. Upon receipt of such notice, the delivery shall be complete.

506108. VALIDITY OF DOCUMENTS

The Exchange makes no representation respecting the authenticity, validity or accuracy of any Notice 

of Intention to Deliver, Notice of Intention to Accept, check or any document or instrument delivered 

pursuant to these rules.

506109. ALTERNATIVE DELIVERY PROCEDURES

A seller and buyer matched by the Exchange under Section 105.E. may agree to make and take 

delivery under terms or conditions which differ from the terms and conditions prescribed by this 

Chapter. In such a case, clearing members shall execute an Alternative Notice of Intention to Deliver 

on the form prescribed by the Exchange and shall deliver a completed and executed copy of such 

notice to the Exchange. The delivery of an executed Alternative Notice of Intention to Deliver to the 

Exchange shall release the clearing members and the Exchange from their respective obligations 

under the rules of this Chapter and any other rules regarding physical delivery. 

In executing such notice, clearing members shall indemnify the Exchange against any liability, cost 

or expense the Exchange may incur for any reason as a result of the execution, delivery, or 

performance of such contracts or such agreement, or any breach thereof or default thereunder. Upon 

receipt of an executed Alternative Notice of Intention to Deliver, the Exchange will return to the 

clearing members all margin monies held for the account of each with respect to the contracts 

involved.
10

EXHIBIT B

NYMEX Rulebook

Chapter 5

(“Trading Qualifications and Practices”)

Position Limit, Position Accountability, 

and Reportable Level Table 

(attached under separate cover)