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| NYMEX ClearPort� Clearing Settlement Overview |
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The New York Mercantile Exchange is providing settlement prices for any
bilateral cleared contracts that have open-interest. As with
futures contracts, these settlements are used to assess, at the end of each
trading day, the value of unliquidated positions. They are used as the basis
for crediting or debiting clearing members' and traders' margin accounts
as variation margin is applied across open positions. The prices reflect
market value for the underlying contracts at the time regular-trading-hours
for Exchange closes.
Though these settles are used for marking-to-market purposes for Exchange positions and every effort is made to ensure they are as accurate as possible, they are not intended for fulfilling any other public purpose such as a public price reference.
The settles are compiled through the following process:
- Cash-market brokers and market participants provide their assessments of market value for the Exchange contracts as of the close of regular-trading-hours for the Exchange. These prices are provided during a collection period that follows the Exchange close.
- The set of prices are averaged as well as subjected to an "Olympic-style average" where high and low prices are not included in the calculations.
- The Exchange collects additional information that is either directly
or indirectly related to its cleared bilateral products
from other sources on market prices and values.
- Exchange staff evaluates all of this information and approves settle prices for the Exchange contracts where there is open-interest.
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