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Description

The Low Sulphur Gasoil 1st Line vs Brent 1st Line Average Price Option (in bbls) is based on the underlying Low Sulphur Gasoil 1st Line vs Brent 1st Line Future (ULD) and will automatically exercise into the Low Sulphur Gasoil 1st Line vs Brent 1st Line Future (ULD) on the day of expiry of the options contract.

Market Specifications

Trading Screen Product Name

Gasoil Crack Futures (bbl)

Trading Screen Hub Name

LS GO 1st Line/Brent 1st Line

Contract Symbol

ULD

Hedge Instrument

The delta hedge for the Low Sulphur Gasoil 1st Line vs Brent 1st Line Average Price Option is the Low Sulphur Gasoil 1st Line vs Brent 1st Line Future (ULD)

Contract Size

1,000 barrels

Unit of Trading

Any multiple of 1,000 barrels

Currency

US Dollars and cents

Trading Price Quotation

One cent ($0.01) per barrel

Settlement Price Quotation

One hundredth of one cent ($0.0001) per barrel

Minimum Price Fluctuation

One hundredth of one cent ($0.0001) per barrel

Last Trading Day

Last Trading Day of the contract month

Option Style

Options are average priced and will be automatically exercised into the Low Sulphur Gasoil 1st Line vs Brent 1st Line Future (in bbls) on the expiry day if they are "in the money". The Future resulting from exercise immediately goes to cash settlement relieving market participants of the need to concern themselves with liquidation or exercise issues. If an option is "out of the money" it will expire automatically. It is not permitted to exercise the option on any other day or in any other circumstances than the Last Trading Day. No manual exercise is permitted.

Option Premium / Daily Margin

The Low Sulphur Gasoil 1st Line vs Brent 1st Line Average Price Option (in bbls) is a premium-paid-upfront option. The traded premium will therefore be debited by the Clearing House from the Buyer and credited to the Seller on the morning of the Business Day following the day of trade. Members who are long premium-paid-upfront options will receive a Net Liquidating Value (NLV) credit to the value of the premium which is then used to offset the initial margin requirement flowing from both these options and positions in other energy contracts. Members who are short premium-paid-upfront options will receive an NLV debit in addition to their initial margin requirement. NLV is calculated daily with reference to the settlement price of the option

Expiry

16:30 London Time (11:30 EST).

Automatic exercise settings are pre-set to exercise contracts which are one minimum price fluctuation or more “in the money” with reference to the relevant reference price. Members cannot override automatic exercise settings or manually enter exercise instructions for this contract.

The reference price will be a price in USD and cents per barrel equal to the average of the settlement prices of the Low Sulphur Gasoil 1st Line vs Brent 1st Line Future (in bbls) for the contract month. When exercised against, the Clearing House, at its discretion, selects sellers against which to exercise on a pro rata basis.

conversion factor: 1 metric tonne = 7.45 barrels

Strike Price Intervals

This contract will support Custom Option Strikes with strikes in increments of $0.25 within a range of -$5 to $60. This range may be revised from time to time according to future 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

Roll Adjust Provision

In order to use the correct Floating Price quotations, the nearby month quotation for ICE Brent Futures and ICE Low Sulphur Gasoil Futures specified in the Floating Price terms above will be used except for the expiration date of each commodity's underlying delivery month's futures contract. On such date, the applicable pricing quotation will be rolled to the following month's futures contract. 

Contract Series

Up to 72 consecutive months

Final Payment Date

Two Clearing House Business Days following the Last Trading Day

Business Days

ICE Business Days

MIC Code

IFEU

Clearing Venues

ICEU

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Trading Hours

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