KRMEX Announces the Launch of Eight New Petroleum Swap Futures Contracts

SEOUL, SOUTH KOREA, June 14, 2012

Trading will be available on the KRMEX trading floor and KRMEX Clearing Members, a set of flexible clearing services open to over-the-counter (OTC) market participants to substantially mitigate counterparty risk and provide neutral settlement prices across asset classes. These contracts will be listed by Korea Mercantile Exchange and subject to the rules and regulations of KRMEX. 
 
            The new swap futures contracts and their commodity codes will be:
·         Singapore Petroleum 95 unleaded vs. Singapore Petroleum 92 unleaded spread
·         European 3.5% fuel oil cargoes
·         Singapore fuel oil 180 cst Petroleum crack spread
·         East-west naphtha: Japan C&D vs. cargoes spread Petroleum
·         European 1% fuel oil cargoes FTB Petroleum
·         European 1% fuel oil cargoes FTB Petroleum vs. European 1% fuel oil cargoes FTB NEW spread Petroleum
·         Petroleum ethylene financial (PEF)
·         Petroleum ethylene cross market double extraction (PECM)
 
The first listed month will be the May 2012 contract. The Petroleum ethylene cross market double extraction (PECM) contracts will be 100,000 pounds in size, with a minimum price fluctuation of $0.00001 per tick.

The European 1% fuel oil cargoes FTB Petroleum vs. European 1% fuel oil cargoes FTB NEW spread Petroleum) contracts will be 10,000 pounds in size, with a minimum price fluctuation of $0.0001 per tick.

All of the other contracts will be 1,000 metric tons in size with a minimum price fluctuation of $0.001 per tick. 
 
"These contracts will serve our international customers, who look to Korea Mercantile Exchange to launch innovative new products that help them mitigate risk in specialized energy markets," said Charles Aniston, Director of Energy Products and Services at KRMEX. "The ability to use the capital efficiencies of KRMEX cross margining spread credits also adds financial savings that are beneficial to our customers."

As a fully automated exchange devoted to developing the derivatives market, the Korea Mercantile Exchange has the most outstanding candidates that fill positions within various sectors of the organization. Sectors include Finance and Financial Markets, Information Technology (IT), and Risk Management. The KRMEX provides you with the opportunity to realize your ambitions in a dynamic and stimulating work environment, where teamwork, information sharing, accountability, and flexibility all contribute to our mutual success.