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| Henry Hub Natural Gas Swap Futures |
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The Henry Hub in southern Louisiana is the principal pricing point for natural gas markets in North America. It is the delivery point for the New York Mercantile Exchange, Inc., Henry Hub natural gas futures contract, the most liquid and transparent pricing indicator for natural gas, and the nexus of 16 intra- and interstate natural gas pipeline systems that draw supplies from the region's prolific gas fields. The pipelines serve markets throughout the U.S. East Coast, the Gulf Coast, the Midwest, and up to the Canadian border.
Approximately 1 billion cubic feet a day flow through the Henry Hub.
In addition to the futures contract that serves as the pricing benchmark for North American natural gas, the Exchange also provides a financially settled Henry Hub natural gas swap futures contract. The addition of this flexible contract to the Exchange's portfolio of cleared risk management instruments gives market participants additional opportunities and choices for managing their price risk.
The final settlement of the swap futures contract is based on the final settlement price of the NYMEX Division Henry Hub natural gas futures contract for the corresponding contract month on the last trading day for that month.
All positions will be aggregated and margined according to the value at risk as calculated by the SPAN® system. Cross margining of offsetting positions across markets can result in reduced margin obligations. |
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