The New York Mercantile Exchange has announced the launch and listing of new catastrophe risk futures contracts.
NYMEX said it has listed three new financially settled catastrophe risk index futures contracts for trading on the CME Globex electronic trading platform and for clearing on NYMEX ClearPort, beginning on March 4–for a March 5 trade date.
The exchange said that on March 6, NYMEX will also launch catastrophe risk options contracts for trading on the NYMEX trading floor and for clearing on NYMEX ClearPort.
New index futures contracts and their commodity codes are: nationwide (WU), Texas to Maine (WY), and Florida (WF). The commodity codes for the index options contracts are: national index (XW), Texas to Maine (XY), and Florida (XF).
NYMEX said the contracts are annual and will be listed for loss-years 2007, 2008 and 2009. Each will be listed as a December contract for those loss years.
The futures and options contracts will expire on the last business day in March following the calendar loss-year. The options contracts are European-style options, settling only on expiration day.
Fees for CME Globex, NYMEX ClearPort, and the NYMEX trading floor will be $8 for members and $10 for non-members. NYMEX ClearPort fees for COMEX members will be $10.
NYMEX said the final settlement will be based on the index compiled from Property Claim Services data for the appropriate regions, dates and perils covered. The index is valued as insured losses divided by $10 million.
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