SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested 

Registered Entity Identifier Code (optional): 23-226

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): 07/28/23 Filing Description: Initial Listing of the Argus Butane 

(Saudi Aramco) Futures Contract

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

Official Product Name: See filing.

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: 

Rule Numbers:
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

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Christopher Bowen 

Managing Director and Chief Regulatory Counsel

Legal Department

July 28, 2023

VIA ELECTRONIC PORTAL

Mr. Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Future Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, DC 20581

Re: CFTC Regulation 40.2(a) Certification. Initial Listing of the Argus Butane (Saudi 

Aramco) Futures Contract.

NYMEX Submission No. 23-226

Dear Mr. Kirkpatrick:

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

Trading Commission (“CFTC” or “Commission”) the listing of the Argus Butane (Saudi Aramco) Futures 

contract (the “Contract”) for trading on the CME Globex electronic trading platform (“CME Globex”) and for 

submission for clearing via CME ClearPort effective Sunday, August 13, 2023 for trade date Monday, 

August 14, 2023.

Contract Title Argus Butane (Saudi Aramco) Futures

CME Globex and

CME ClearPort Code MBA

Rulebook Chapter 861

Settlement Type Financial

Contract Size 1,000 metric tons

Pricing Quotation U.S. dollars and cents per metric ton

Minimum Price 

Fluctuation $0.001 per metric ton

Value Per Tick $1.00

Termination of 

Trading

Trading terminates on the last business day of the month prior to the contract 

month

Listing Schedule

Monthly contracts listed for the current year and the next consecutive 

calendar year. List monthly contracts for a new calendar year following the 

termination of trading in the December contract of the current year.

First Listed Contract 

Month September 2023

Block Trade 

Minimum Threshold 2 contracts – subject to a minimum 15-minute reporting window

CME Globex Match 

Algorithm First-In, First-Out (FIFO)
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

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Additionally, the Exchange is also notifying the Commission that the amendment to the position limits

aggregation of existing Mini Argus Butane (Saudi Aramco) futures. The contract size of the Mini Argus 

Butane (Saudi Aramco) futures is 100 metric ton, or one-tenth of the size of the new Argus Butane (Saudi 

Aramco) futures. As a result of the new product listing, the Exchange is amending the aggregation such 

that the position limits for the Mini Argus Butane (Saudi Aramco) futures will aggregate into the new Argus 

Butane (Saudi Aramco) futures in 10-to-1 ratio.

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

the Commodity Exchange Act (“CEA”) and identified that the Contract may have some bearing on the 

following Core Principles:

• Compliance with Rules: Trading in the Contract will be subject to the rules in Rulebook Chapter 

4 which includes prohibitions against fraudulent, noncompetitive, unfair, and abusive practices. 

Additionally, trading in this Contract will also be subject to the full range of trade practice rules, the 

majority of which are contained in Chapter 5 and Chapter 8 of the Rulebook. As with all products 

listed for trading on one of CME Group’s designated contract markets, activity in this product will 

be subject to extensive monitoring and surveillance by CME Group’s Market Regulation 

Department. The Market Regulation Department has the authority to exercise its investigatory and 

enforcement power where potential rule violations are identified.

• Contracts Not Readily Subject to Manipulation: The Contract is not readily subject to 

manipulation because of its structural attributes, underlying market, and reliance on a well 

administered index. The Contracts final settle against an index published by Argus Media and 

licensed to the Exchange.

• Prevention of Market Disruption: Trading in the Contract will be subject to Rules of NYMEX, 

which include prohibitions on manipulation, price distortion and disruption to the cash settlement 

process. As with any new product listed for trading on a CME Group designated contract market, 

trading activity in the Contract proposed herein will be subject to monitoring and surveillance by 

CME Group’s Market Regulation Department.

• Position Limitations or Accountability: The speculative position limits for the Contract as 

demonstrated in this submission are consistent with the Commission’s guidance.

• Availability of General Information: The Exchange will publish on its website information 

regarding the Contract specifications, terms, and conditions, as well as daily trading volume, open 

interest, and price information.

• Daily Publication of Trading Information: The Exchange will publish the Contract trading 

volumes, open interest levels, and price information daily on its website and through quote vendors 

for the Contracts.

• Execution of Transactions: The Contract will be listed for trading on the CME Globex electronic 

trading and for clearing through the CME ClearPort. The CME Globex trading venue provides for 

Trading and 

Clearing Hours

CME Globex Pre-Open: Sunday 4:00 p.m. - 5:00 p.m. Central Time/CT 

Monday - Thursday 4:45 p.m. - 5:00 p.m. CT 

CME Globex: Sunday - Friday 5:00 p.m. CT with a daily maintenance period 

from 4:00 p.m. - 5:00 p.m. CT 

CME ClearPort: Sunday - Friday 5:00 p.m. - 4:00 p.m. CT with no reporting 

Monday - Thursday 4:00 p.m. - 5:00 p.m. CT
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

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competitive and open execution of transactions. CME Globex affords the benefits of reliability and 

global connectivity.

• Trade Information: All requisite trade information for the Contract will be included in the audit trail 

and is sufficient for the Market Regulation Department to monitor for market abuse.

• Financial Integrity of Contract: The Contract will be cleared by the CME Clearing House, a 

derivatives clearing organization registered with the CFTC and subject to all CFTC regulations 

related thereto.

• Protection of Market Participants: NYMEX Rulebook Chapters 4 and 5 set forth multiple 

prohibitions that preclude intermediaries from disadvantaging their customers. These rules apply 

to trading in all of the Exchange’s competitive trading venues and will be applicable to transaction 

in the Contract.

• Disciplinary Procedures: Chapter 4 of the Rulebook contains provisions that allow the Exchange 

to discipline, suspend, or expel members or market participants that violate the Rulebook. Trading 

in the contract will be subject to Chapter 4, and the Market Regulation Department has the authority 

to exercise its enforcement power in the event rule violations in the product are identified.

• Dispute Resolution: Disputes with respect to trading in the Contract will be subject to the 

arbitration provisions set forth in Chapter 6 of the Rulebook. Chapter 6 allows all non-members to 

submit a claim for financial losses resulting from transactions on the Exchange to arbitration. A 

member named as a respondent in a claim submitted by a nonmember is required to participate in 

the arbitration pursuant to Chapter 6. Additionally, the Exchange requires that members resolve 

all disputes concerning transactions on the Exchange via arbitration.

Pursuant to Section 5c(c) of the Act and CFTC Regulation 40.2(a), the Exchange hereby certifies that listing 

the Contract complies with the Act, including regulations under the Act. There were no substantive opposing 

views to listing of the Contract. 

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 contact the undersigned at (212) 299-2200 

or e-mail CMEGSubmissionInquiry@cmegroup.com.

Sincerely,

/s/Christopher Bowen

Managing Director and Chief Regulatory Counsel

Attachments: Exhibit A: NYMEX Rulebook Chapter 861

Exhibit B: Position Limit, Position Accountability, and Reportable Level Table in 

 Chapter 5 of the NYMEX Rulebook (attached under separate cover)

Exhibit C: NYMEX Rule 588.H. – (“Globex Non-Reviewable Trading Ranges”) Table

Exhibit D: Exchange Fees

Exhibit E: Cash Market Overview and Analysis of Deliverable Supply
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EXHIBIT A

NYMEX Rulebook

Chapter 861

Argus Butane (Saudi Aramco) Futures

861100. SCOPE OF CHAPTER

The provisions of these Rules shall apply to all contracts bought or sold on the Exchange for cash 

settlement based on the Floating Price. 

861101. CONTRACT SPECIFICATIONS

The Floating Price for each contract month is equal to the final assessment from Argus Media for 

“Butane (Saudi Aramco)” contract price for the contract month.

861102. TRADING SPECIFICATIONS

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

861102.A. Trading Schedule

The hours of trading for this contract shall be determined by the Exchange.

861102.B. Trading Unit

The contract quantity shall be 1,000 metric tons. Each contract shall be valued as the contract 

quantity (1,000) multiplied by the settlement price. 

861102.C. Price Increments

Prices shall be quoted in U.S. dollars and cents per metric ton. The minimum price fluctuation shall 

be $0.001 per metric ton. 

861102.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.

861102.E. Termination of Trading

Trading shall cease on the last Business Day of the month prior to the contract month. 

861103. FINAL SETTLEMENT

Delivery under the contract shall be by cash settlement. Final settlement will be based on the Floating 

Price. The final settlement price will be the Floating Price calculated for each contract. 

861104. DISCLAIMER

See NYMEX/COMEX Chapter iv. (“DISCLAIMERS”) incorporated herein by reference.
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EXHIBIT B

NYMEX Rulebook

Chapter 5

(“Trading Qualifications and Practices”)

Position Limit, Position Accountability, and Reportable Level Table 

(under separate cover)
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EXHIBIT C

NYMEX Rulebook

Chapter 5

(“Trading Qualifications and Practices”)

NYMEX Rule 588.H. – (“Globex Non-Reviewable Trading Ranges”) Table

(additions underscored)

 Outright

Instrument Name Globex

Symbol

Globex

Non-Reviewable

Ranges

(NRR)

NRR:

Globex

Format

 

NRR:

Ticks

Argus Butane (Saudi 

Aramco) Futures MBA $1.00 per metric ton 1000 1000
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EXHIBIT D

Exchange Fees

Member Non-Member

CME Globex $7.00 $9.00

EFP $7.00 $9.00

Block $7.00 $9.00

EFR/EOO $7.00 $9.00

Processing Fees Member Non-Member

Cash Settlement $1.00 $1.00

Facilitation Fee $0.60

Give-Up Surcharge $0.05

Position Adjustment/Position 

Transfer $0.10
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EXHIBIT E

Cash Market Overview and Analysis of Deliverable Supply – Saudi CP Butane

Exchange staff conducted a review of the underlying cash market and deliverable supply of butane for the 

new Argus Butane (Saudi Aramco) futures. The product will be listed for trading on CME Globex and be 

made available for submission for clearing through CME ClearPort. 

Contract Title Commodity 

Code

Rulebook 

Chapter

Argus Butane (Saudi Aramco) Futures MBA 861

Data Sources

The Exchange has used several data sources to establish an overall level of deliverable supply for the 

butane and propane markets. 

The Exchange has based its analysis of deliverable supply of butane on official production data provided 

by Saudi Aramco. The Exchange has used the published volumes of production and sales (exports) for 

butane as made public by Saudi Aramco, the benchmark refence price source for the butane market. The 

data is obtained from the annual reports that are published by the state energy company Saudi Aramco.

CME is a party to license agreements with Argus to utilize their pricing data for the Saudi CP. Argus reports 

the Contract Price (CP) as provided to it by Saudi Aramco monthly and does not make any assessment on 

the value of this price. This price is an Official Selling Price and is therefore not subject to Argus Media 

policies, processes, and control activities in respect of sources and data verification. 

Liquefied Petroleum Gas (“LPG”) market Cash Market Overview 

S&P Global Platts notes that LPG exports from the Middle East reached 42.7 million tons in 20221. In the 

region, LPG exports are almost evenly split into propane and butane cargoes; as such, the oil output cut 

will have a similar effect on propane and butane exports.” Saudi Arabia, the UAE and Kuwait exported 24 

million tons of LPG in 2022 which is estimated to be around 675 cargoes. 

1 https://platform.platts.spglobal.com/web/client?auth=inherit#platts/insightsArticle?articleID=66be3d13-64a7-4857-

87ab-4c1a52b882f3&_ga=2.177662636.860870695.1686063612-2119385859.1686063612
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Propane and Butane are two similar gases used for heating and other fuel applications. Butane burns more 

cleanly and provides more energy, whilst propane is more appropriate in applications where temperatures 

may drop below freezing. Propane and butane are typically referred to together as liquefied petroleum gas 

(LPG) in Europe and Asia, and as natural gas liquids (NGLs) in the United States. 

LPG is typically shipped in liquefied form in specially designed vessels that carry up to 22,000 metric tons. 

Each shipment will be either 100% propane, 100% butane, or mixed of propane and butane in separate 

compartments. 

Saudi Arabia butane

Saudi Arabia is one of the world's major exporters of propane and butane, and the monthly reference price 

set by national oil and gas producer Saudi Aramco has become a key benchmark for all the exporters of 

LPG from the Middle East, such as Kuwait Petroleum and the Abu Dhabi National Oil company. Saudi 

Aramco is the largest producer of LPG in the Middle East. 

Contract prices for Propane and Butane typically reference the Saudi contract price and majority of cargoes 

are shipped to the Asian markets, where Japan, South Korea, India, and China are the major importers. 

There is a liquid paper market then has developed due to the heightened physical exposure to the Saudi 

prices. The paper market is diverse in terms of participation with large numbers of end-users looking to 

hedge their exposure to the Contract Price set by Saudi Aramco. 

Saudi Aramco provides data on its butane production volumes but does not make its export volumes 

available beyond the 2017 reporting period. Based on the historical data back to 2015, the export volumes 

are about 80% of the total volume produced therefore, this figure has been maintained to derive an export 

value for 2019 to 2021. For the three-year period 2019 to 2021, Saudi Aramco produced an average volume 

of 111.07 million barrels of butane of which 88.83 million barrels was exported. 

Table 1: Saudi Aramco Production and Exports of Butane 2019 to 2021

Unit: Million barrels

Saudi Aramco 2019 2020 2021 3-year 

average

Butane production 116.4 110.6 106.2 111.07

Butane sales 

(exports) 93.12 88.4 84.96 88.83

Source: Saudi Aramco Annual Review – 2020 to 2022 (for period 2019-2021) 
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Analysis of Deliverable Supply 

Appendix C to part 38 of the Commission’s regulations defines deliverable supply as “the quantity of the 

commodity meeting the contract’s delivery specifications that can reasonably be expected to be readily 

available to short traders and saleable by long traders at its market value in normal cash marketing channels 

at the derivative contract’s delivery points during the specified delivery period, barring abnormal movement 

in interstate commerce. Typically, deliverable supply reflects the quantity of the commodity that potentially 

could be made available for sale on a spot basis at current prices at the contract’s delivery points2.

The Argus Butane (Saudi Aramco) Futures contract is financially settled against the Saudi Aramco 

Contract Price (CP) for butane. The Exchange has determined to base its analysis of deliverable supply on 

production data of Saudi Aramco butane. The Exchange has used the 3-year average production figures 

as produced by Saudi Aramco and reported in their annual report (see table 1) to determine the volume of 

deliverable supply. 

Based on this data for 2019 to 2021 production of butane was 111.07 million barrels. This is equivalent to 

9.255 million barrels per month, or 797,916 metric tons per month, assuming a barrels-to-metric ton 

conversion rate of 11.6 barrels per metric ton. In addition to the production data, the export data was also 

presented in table 1 to illustrate the export-oriented characteristic of Saudi Aramco. Production and Imports 

add product to a market and exports and consumption represent the usage of the product within a market. 

Saudi Aramco does not produce an import number therefore it has been excluded in the calculation of 

deliverable supply. An export figure was included in the Aramco annual report up to 2017 and then it ceased 

to be produced. 

The level of exports equates to around 80% of production and this figure was based on the 2015 to 2017 

figures where both production and export volumes were published. The percentage figure of 80% was 

applied to the production volumes for 2019 to 2021 to derive an export figure. It is important to note that 

that the level of exports will vary over time according to internal market demand. For this reason, we have 

excluded exports as the basis for determining deliverable supply and the deliverable supply base is 

represented by production only. We believe that this is a conservative approach in the determination of 

deliverable supply. For the contract size of 1,000 metric tons per contract, Exchange staff hence proposes 

a spot month limit of 175 contracts or 175,000 metric tons which is the equivalent of 21.9% of the total 

monthly deliverable supply in the butane market.

Based on a deliverable supply for the Argus Butane (Saudi Aramco) Futures contract of 111.07 million 

barrels or 9.255 million barrels per month or 797,916 tons per month. The total monthly deliverable supply 

is 798 futures contracts (rounded up) based on a futures contract size of 1,000 metric tons. The Exchange 

proposes a spot month position limit of 175 contracts which is 21.92% of the total monthly deliverable supply 

in the butane market. 

As a result of the listing of the contract, the Exchange is amending the aggregation of the existing contract 

such that positions in the Mini Argus Butane (Saudi Aramco) Futures (commodity code MAA) will aggregate 

into the Argus Butane (Saudi Aramco) Futures contract. 

2 https://www.govinfo.gov/content/pkg/CFR-2022-title17-vol1/pdf/CFR-2022-title17-vol1.pdf