NODAL EXCHANGE CONTRACT SPECIFICATION

PJM WESTERN HUB Calendar Year Real Time Off-Peak Power Option (Futures 

Style Margining)

ITEM SPECIFICATION

Contract Description A calendar year option on the corresponding period of twelve PJM WESTERN HUB 

Monthly Real Time Off-Peak Power Contract

Option Style European

Option Contract Code ZAA

Underlying Futures Contract PJM WESTERN HUB Monthly Real Time Off-Peak Power Contract for JanuaryDecember of the calendar year

Contract Code for Underlying 

Futures LMK

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of each of the Underlying Contracts

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day’s Settlement Price of the Underlying 

Contract. User-defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Minimum Tick $0.0001 per MWh

Settlement Price Precision $0.0001 per MWh

Last Trading Day The second Friday prior to the first calendar day of the Option period. Trading closes 

at 4:15 pm EPT.

Contract Series Up to 4 consecutive January – December yearly Option contract periods

Premium/NLV

The premium of a futures-style option is paid/received on the next margin cycle 

following the option exercise based on the last settlement price of the option 

contract and contract size on the exercise day.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate.

Exercise

Exercise of Options is automatic. Manual exercise or abandon is not permitted. 

At exercise, options that are “in the money”, with respect to the weighted average of 

the settlement prices of the underlying monthly futures on the exercise day, will 

exercise automatically into twelve underlying future contracts, one for each contract 

month in the contract period, with a contract price equal to the Strike Price. If the 

option is “out of money”, then it expires automatically. 

Exercise Day is the Last Trading Day.

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF
NODAL EXCHANGE CONTRACT SPECIFICATION

PJM WESTERN HUB Calendar Year Real Time On-Peak Power Option (Futures 

Style Margining)

ITEM SPECIFICATION

Contract Description A calendar year option on the corresponding period of twelve PJM WESTERN HUB 

Monthly Real Time On-Peak Power Contract

Option Style European

Option Contract Code ZAB

Underlying Futures Contract PJM WESTERN HUB Monthly Real Time On-Peak Power Contract for JanuaryDecember of the calendar year

Contract Code for Underlying 

Futures LMJ

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of each of the Underlying Contracts

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day’s Settlement Price of the Underlying 

Contract. User-defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Minimum Tick $0.0001 per MWh

Settlement Price Precision $0.0001 per MWh

Last Trading Day The second Friday prior to the first calendar day of the Option period. Trading closes 

at 4:15 pm EPT.

Contract Series Up to 4 consecutive January – December yearly Option contract periods

Premium/NLV

The premium of a futures-style option is paid/received on the next margin cycle 

following the option exercise based on the last settlement price of the option 

contract and contract size on the exercise day.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate.

Exercise

Exercise of Options is automatic. Manual exercise or abandon is not permitted. 

At exercise, options that are “in the money”, with respect to the weighted average of 

the settlement prices of the underlying monthly futures on the exercise day, will 

exercise automatically into twelve underlying future contracts, one for each contract 

month in the contract period, with a contract price equal to the Strike Price. If the 

option is “out of money”, then it expires automatically. 

Exercise Day is the Last Trading Day.

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF
NODAL EXCHANGE CONTRACT SPECIFICATION

PJM WESTERN HUB Monthly Real Time Off-Peak Power Option (Futures Style 

Margining)

ITEM SPECIFICATION

Contract Description An option of the PJM WESTERN HUB Monthly Real Time Off-Peak Power Contract

Option Style European

Option Contract Code ZAC

Underlying Futures Contract PJM WESTERN HUB Monthly Real Time Off-Peak Power Contract

Contract Code for Underlying 

Futures FKF

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of the Underlying Contract

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day’s Settlement Price of the Underlying 

Contract. User- defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Minimum Tick $0.0001 per MWh

Settlement Price Precision $0.0001 per MWh

Last Trading Day The second business day prior to the first calendar day of the Option contract month

Contract Series Up to 60 months

Premium/NLV

The premium of a futures-style option is paid/received on the next margin cycle 

following the option exercise based on the last settlement price of the option 

contract and contract size on the exercise day.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate.

Exercise

Exercise of In-the-Money Options is automatic on the Last Trading Day unless the 

Exchange is notified by 4:30 pm on the Last Trading Day (1) to allow the In-theMoney Options to expire without exercise or (2) to exercise expiring Out-of-theMoney Options. When exercised against, Option sellers will be selected on a pro-rata 

basis or at the Exchange’s discretion.

Settlement Method Exercise into Underlying Contract

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF
NODAL EXCHANGE CONTRACT SPECIFICATION

PJM WESTERN HUB Monthly Real Time On-Peak Power Option (Futures Style 

Margining)

ITEM SPECIFICATION

Contract Description An option of the PJM WESTERN HUB Monthly Real Time On-Peak Power Contract

Option Style European

Option Contract Code ZAD

Underlying Futures Contract PJM WESTERN HUB Monthly Real Time On-Peak Power

Contract Code for Underlying 

Futures FKE

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of the Underlying Contract

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.50 increments; 20 Strike Prices up and 20 Strike Prices down from the at-themoney Strike Price per Option contract. The at-the-money Strike Price is the closest 

interval nearest to the previous business day’s Settlement Price of the Underlying 

Contract. User- defined Strike Prices are permitted in $0.05 increments.

Currency US Dollars

Minimum Tick $0.0001 per MWh

Settlement Price Precision $0.0001 per MWh

Last Trading Day The second business day prior to the first calendar day of the Option contract month

Contract Series Up to 60 months

Premium/NLV

The premium of a futures-style option is paid/received on the next margin cycle 

following the option exercise based on the last settlement price of the option 

contract and contract size on the exercise day.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate.

Exercise

Exercise of In-the-Money Options is automatic on the Last Trading Day unless the 

Exchange is notified by 4:30 pm on the Last Trading Day (1) to allow the In-theMoney Options to expire without exercise or (2) to exercise expiring Out-of-theMoney Options. When exercised against, Option sellers will be selected on a pro-rata 

basis or at the Exchange’s discretion.

Settlement Method Exercise into Underlying Contract

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF
NODAL EXCHANGE CONTRACT SPECIFICATION

Washington Carbon Allowance Vintage 2023 Option (Futures Style Margining)

ITEM SPECIFICATION

Contract Description An option of the Washington Carbon Allowance Vintage 2023 Future

Option Style European

Option Contract Code WKG

Underlying Futures Contract Washington Carbon Allowance Vintage 2023 Future

Contract Code for Underlying 

Futures WBG

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot 1 lot of the Underlying Contract

Unit of Trading 1 lot, as defined in Contract Size per lot

Strike Price

A minimum of ten Strike Prices in increments of $0.05 above and below the at-themoney Strike Price. The at-the-money strike price is the closest interval nearest to 

the previous day’s Settlement Price of the Underlying Contract. Strike Price 

boundaries are adjusted according to futures price movements. User-defined Strike 

Prices are allowed in $0.05 increments.

Currency US Dollars

Minimum Tick $0.001 per Washington Carbon Allowance

Settlement Price Precision $0.001 per Washington Carbon Allowance

Last Trading Day

At 4:00 pm EPT on the 15th calendar day of the delivery month. Where the 15th 

calendar day is not a Business Day, the Last Trading Day shall be the first Business 

Day following the 15th calendar day of the delivery month

Contract Series

The initial listing shall include quarterly contracts starting with December 2023 

expiry through 2025. The exchange may list any other calendar month contract off 

the standard listing cycle beginning with March of 2023 for up to 10 years.

Premium/NLV

The premium of a futures-style option is paid/received on the next margin cycle 

following the option exercise based on the last settlement price of the option 

contract and contract size on the exercise day.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate.

Exercise

Exercise of In-the-Money Options is automatic on the Last Trading Day unless the 

Exchange is notified by 5:30 pm EPT on the Last Trading Day (1) to allow the In-theMoney Options to expire without exercise or (2) to exercise expiring Out-of-theMoney Options

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_ 

C-Limits_and_Levels.PDF
NODAL EXCHANGE CONTRACT SPECIFICATION

Henry Hub Penultimate Monthly Natural Gas Option 2,500 (Futures Style 

Margining)

ITEM SPECIFICATION

Contract Description An option of the Henry Hub Penultimate Monthly Natural Gas Contract 2,500

Option Style European

Option Contract Code HWX

Underlying Futures Contract Henry Hub Penultimate Monthly Natural Gas Contract 2,500

Contract Code for Underlying 

Futures PHH

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of the underlying futures contract

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.25 increment strike prices. 10 strikes above and below the at-the-money Strike 

Price per contract. The at-the-money strike price is the closest interval nearest to the 

previous business day’s settlement price of the underlying contract. User-defined 

strike prices are allowed in $0.001 increments

Currency US Dollars

Minimum Tick $0.0001 per MMBtu

Settlement Price Precision $0.0001 per MMBtu

Last Trading Day Trading shall cease at 2:30 pm EPT on the fourth CME Business Day prior to the first 

calendar day of the contract month.

Contract Series Up to 84 months

Premium/NLV

The premium of a futures-style option is paid/received on the next margin cycle 

following the option exercise based on the last settlement price of the option 

contract and contract size on the exercise day.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate.

Exercise

Exercise of “in-the-money” options is automatic on the Last Trading Day. Clearing 

members that are long options have until 4:30 pm on the Last Trading Day to 

indicate whether they will exercise expiring “out-of-the-money” options, or allow the 

“in-the-money” options to expire without exercise based on the settlement price of 

the underlying futures on that day. When exercised against, option sellers will be 

selected on a pro-rata basis, at the Exchange’s discretion.

Settlement Method Exercise into underlying futures contract

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF
NODAL EXCHANGE CONTRACT SPECIFICATION

Henry Hub Penultimate Monthly Natural Gas Option 10,000 (Futures Style 

Margining)

ITEM SPECIFICATION

Contract Description An option of the Henry Hub Penultimate Monthly Natural Gas Contract 10,000

Option Style European

Option Contract Code HWY

Underlying Futures Contract Henry Hub Penultimate Monthly Natural Gas Contract 10,000

Contract Code for Underlying 

Futures NHP

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot One lot of the underlying futures contract

Unit of Trading 1 lot, as defined in Contract Size per Lot

Strike Price

$0.05 increment strike prices. 50 strikes above and below the at-the-money Strike 

Price per contract. The at-the-money strike price is the closest interval nearest to the 

previous business day’s settlement price of the underlying contract. User-defined 

strike prices are allowed in $0.001 increments

Currency US Dollars

Minimum Tick $0.0001 per MMBtu

Settlement Price Precision $0.0001 per MMBtu

Last Trading Day Trading shall cease at 2:30 pm EPT on the fourth CME Business Day prior to the first 

calendar day of the contract month.

Contract Series Up to 84 months

Premium/NLV

The premium of a futures-style option is paid/received on the next margin cycle 

following the option exercise based on the last settlement price of the option 

contract and contract size on the exercise day.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate.

Exercise

Exercise of “in-the-money” options is automatic on the Last Trading Day. Clearing 

members that are long options have until 4:30 pm on the Last Trading Day to 

indicate whether they will exercise expiring “out-of-the-money” options, or allow the 

“in-the-money” options to expire without exercise based on the settlement price of 

the underlying futures on that day. When exercised against, option sellers will be 

selected on a pro-rata basis, at the Exchange’s discretion.

Settlement Method Exercise into underlying futures contract

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF