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Maximize Your Capital Efciency Take Advantage of Cross Margining and Cost of Trade Savings at NYMEX
TRADING YOUR CRUDE AND REFINED PRODUCTS AT NYMEX CAN REDUCE MARGIN BY OVER 75%
Executing energy spreads on CME Group offers signicant capital efciencies to rms holding positions for any length of time. Margin offsets substantially reduce the capital required to trade and hedge energy risk, while tighter bid/ask spreads for cracks and fee-free Brent lead to cost of trade savings, making NYMEX the exchange of choice for customers looking to maximize their capital efciencies.
Spread B** Initial Margin Offsets for Brent, RBOB, and ULSD are 78%, 75% and 85% respectively
NYMEX Brent, NYMEX RBOB, NYMEX ULSD Initial Margin Requirement 3 ICE Brent: 2 NYMEX RBOB: 1 NYMEX ULSD: $12,300 $11,000 $4,290 Initial Margin Requirement 3 NYMEX Brent: 2 NYMEX RBOB: 1 NYMEX ULSD: $2,862 $2,611 $644
7 8%
Total Margin
$27,590
Total Margin
$6,117
No Cross-Margining benet
*Margin information from www.cmegroup.com and www.theice.com on July 23, 2013
90 80 Number Of Observations 70 60 50 40 30 20 10 0 0.04 0.06 0.08 0.02 0.20 0.24 0.26 0.22 0.10 0.14 0.16 0.18 0.12 Number Of Observations
140 120 100 80 60 40 20 0 0.01 0.03 0.05 0.07 0.09 0.11 0.13 0.15 0.17 0.19 0.21 0.23 0.25 Bid/Ask Spread, $/Barrel
NYMEX ICE
PM833/00/0713
* Data and analysis courtesy of Creating Capital Eciencies through Portfolio Margining by Howard Simons
To learn more about why trading on NYMEX is the most capital efcient way to execute your strategy, contact us at energy@cmegroup.com.
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