To help market participants better manage their price risk requirements in the energy market, the New York Mercantile Exchange makes available crack spread futures and options contracts. The difference between crude and its underlying product is the "crack spread."

Two main crack spreads are offered by the Exchange: reformulated gasoline blendstock for oxygen blending (RBOB)/crude oil and heating oil/crude oil. Crack spread futures and options trading are available through open outcry and electronic venues.

The Exchange facilitates crack spread trading in its futures markets by treating both legs of the trade as a single transaction. If a crack spread is a positive number then the price of the refined products is higher than that of crude oil. If the spread is a negative number, the products are priced at less than the cost of crude oil.

Crack spread futures and options trade as a one-to-one ratio of crude oil to the product. When trading crack spread options, a single options position results in two offsetting futures positions when the option is exercised. Crack spread futures are also available in two-one-one, three-two-one, or five-three-two ratios of crude oil and its underlying product.