- Trading Screen Product Name
- LS Gas Oil Futures
- Trading Screen Hub Name
- ULSD-ARA
- Hedge Instrument
The delta hedge for the American-Style Option is the Low Sulphur
Gasoil Future (G).
- Contract Symbol
G
- Contract Size
100 metric tonnes
- Unit of Trading
One or more lots of 100 metric tonnes of low sulphur gasoil (10ppm
diesel).
- Currency
US Dollars and cents
- Trading Price Quotation
Five cents ($0.05) per metric tonne
- Settlement Price Quotation
Five cents ($0.05) per metric tonne
- Minimum Price Fluctuation
Five cents ($0.05) per metric tonne
- Last Trading Day
Trading shall cease at the end of the designated settlement period
of ICE Low Sulphur Gasoil Futures on the fifth Business Day prior
to cessation of trading in the underlying ICE Low Sulphur Gasoil
Futures contract.
- Option Premium / Daily Margin
Due to futures style margining option premiums are not paid/received at the time of the transaction. Rather margins are paid /received every day according to the changing value of the option and the total value to be paid/received is only known when the position is closed (by an opposing sale/purchase, exercise or expiry). The buyer never pays more margin than the cost of the premium. All open contracts are marked-to-market daily.
- Exercise Procedure
ICE Low Sulphur Gasoil Options can be exercised into ICE Low
Sulphur Gasoil Futures contracts. ICE Futures Europe options
contracts are of American-style exercise, allowing the buyer to
exercise call and/or put options up to 17:00 (London time) hours on
any Business Day (except on expiry day) during the life of the
contracts, by giving an exercise notice to ICE Clear Europe in
respect of such options.
On expiry day the buyer has up to one hour after the end of the
designated settlement period of the ICE Low Sulphur Gasoil Futures
contract to exercise the options. At that time ICE Clear Europe
will automatically exercise all options that are in-the-money on
behalf of the Member unless instructed otherwise by the Member.
- Contract Series
Up to 96 consecutive months
- Strike Price Increments
At launch, multiples of $0.25 per metric tonne ranging from a
strike of $200 to a strike of $1750. Additional strike prices are
added according to futures price movements.
The at-the-money strike price is the closest interval nearest to
the previous business day's settlement price of the underlying
contract.
- Position Reporting
All positions are converted to futures equivalents by way of deltas
and are aggregated with the futures position for daily position
monitoring by the Exchange.
The Exchange's daily position management regime requires that all
positions in any contract month must be reported to the Exchange on
a daily basis. The Exchange has powers to prevent the development
of excessive positions or unwarranted speculation or any other
undesirable situation and may take any steps necessary to resolve
such situations including the ability to mandate members to limit
the size of such positions or to reduce positions where
appropriate.
During the final month of trading in a contract, the Exchange
contacts holders of Low Sulphur Gasoil positions to confirm their
intent and capability of making or taking delivery and may require
that positions be reduced to limit position concentration, ensure
price convergence with the physical market, and maintain market
integrity.
- Contract Security
ICE Clear Europe acts as the central counterparty for trades conducted on ICE Futures Europe and ICE OTC. This enables it to guarantee the financial performance of every contract registered with it by its members (the clearing members of the Exchange) up to and including delivery, exercise and/or settlement. ICE Clear Europe is able to provide margin offsets between the options and the underlying futures contract as well against options positions executed in other option styles.
- Business Days
ICE Business Days
- MIC Code
- IFEU
- Clearing Venues
- ICEU