Nymex announced plans for new daily, monthly and weekly electricity futures contracts late last year. The contracts are based on the Pennsylvania-New Jersey-Maryland (PJM) hub, one of the most liquid electricity hubs in the US.
The trading permits will be available to firms that are guaranteed by an exchange clearing member, provided they meet certain yet-to-be-determined volume requirements and are approved by the exchange’s committee on trading privileges.
Nymex says it will reimburse brokers for the salary and benefits of floor personnel, telephone usage and other related expenses, provided those costs are incurred through the use of the PJM contracts.
The exchange says participants will also have to meet minimum volume performance and other unspecified requirements to be eligible for the refunds.
Nymex says it intends to announce a launch date for the contracts in the near future. The launch moved a step closer in February after the contracts were granted approval by the Commodity Futures Trading Commission.