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Description

The ICE Low Sulphur Gasoil/Brent Crack allows you to trade the spread between ICE Low Sulphur Gasoil Futures and ICE Brent Futures. Trading a position in the crack results in two separate positions in the underlying futures legs i.e. a long position in the ICE Low Sulphur Gasoil Futures and a short position in the ICE Brent Futures. Trading the ICE Low Sulphur Gasoil Futures Crack enables traders and hedgers to manage price risk for Middle Distillates against a global crude oil benchmark.

Market Specifications

Trading Screen Product Name

LS Gas Oil/Brent Crack

Trading Screen Hub Name

ULSD-ARA/North Sea

Unit of Trading

The minimum crack quantity is 4 lots (made up of 4 LS Gasoil lots & 3 Brent lots). The LS Gasoil/Brent Futures Crack trades in 4 lot increments. The LS Gasoil (traded in metric tonnes) is converted into a price in barrels using a conversion factor of 7.45. One lot of LS Gasoil = 100 metric tonnes, 1 lot of ICE Brent Futures = 1,000 barrels

Currency

US Dollars and cents

Trading Price Quotation

One cent ($0.01) per barrel

Settlement Price Quotation

One cent ($0.01) per barrel

Minimum Price Fluctuation

One cent ($0.01) per barrel

Maximum Price Fluctuation

There are no limits.

Contract Series

Up to 84 consecutive months forward

Clearing

The Clearing House guarantees financial performance of all ICE Futures contracts registered with it by its clearing members. All ICE Futures Member companies are either members of the Clearing House or have a clearing agreement with a Member who is a member of the Clearing House.

Position Limit

Terms are deferred to the contracts referenced by the leg markets.

Last Trading Day

Trading for the Low Sulphur Gasoil/Brent Futures Crack shall cease according to the following schedule:

Contract Months up to and including February 2016:

Trading shall cease at the end of the designated settlement period on the Business Day (a trading day which is not a public holiday in England and Wales) immediately preceding either:

(i) the 15th calendar day before the first calendar day of the contract month, if such 15th calendar day is a Business Day; or,

(ii) if such 15th calendar day is not a Business Day, the next preceding Business Day.

Contract Months from March 2016:

Trading shall cease at the end of the designated settlement period on the last Business Day of the second month preceding the relevant contract month (e.g. the March contract month will expire on the last Business Day of January).

If the day on which trading is due to cease would be either: (i) the Business Day preceding Christmas Day, or (ii) the Business Day preceding New Year’s Day, then trading shall cease on the next preceding Business Day)

Final Settlement

Trading the LS Gasoil/Brent Futures Crack will result in two separate positions in the underlying futures markets for Brent and Low Sulphur Gasoil. The settlement of each leg will be the respective expiry of the Brent and Low Sulphur Gasoil futures contracts as made public by ICE Futures Europe. Upon expiry of the Brent leg, holders of a LS Gasoil/Brent Futures Crack trade will then be left with a long or short position in the LS Gasoil market which will then be settled on expiry of the relevant underlying LS Gasoil futures contract. The last day on which the front-month LS Gasoil/Brent crack spread can be traded is the expiry day of the prompt ICE Brent Crude Futures contract.

LS Gasoil futures contract expiry: Trading shall cease at 12:00 hours London time, 2 business days prior to the 14th calendar day of the delivery.

LS Gasoil Futures settlement time: The weighted average price of trades is determined during a two minute settlement period from 16:28 (11:28 EST) to 16:30 (11:30 EST), London time

Brent futures contract expiry:

Contract Months up to and including February 2016:

Trading shall cease at the end of the designated settlement period on the Business Day (a trading day which is not a public holiday in England and Wales) immediately preceding either:

(i) the 15th calendar day before the first calendar day of the contract month, if such 15th calendar day is a Business Day; or,

(ii) if such 15th calendar day is not a Business Day, the next preceding Business Day.

Contract Months from March 2016:

Trading shall cease at the end of the designated settlement period on the last Business Day of the second month preceding the relevant contract month (e.g. the March contract month will expire on the last Business Day of January).

If the day on which trading is due to cease would be either: (i) the Business Day preceding Christmas Day, or (ii) the Business Day preceding New Year’s Day, then trading shall cease on the next preceding Business Day

Brent Futures settlement time: The weighted average price of trades is determined during a two minute settlement period from 19:28:00 (14:28 EST) to 19:30:00, London time (14:30 EST)

MIC Code

IFEU

Clearing Venues

ICEU

Trading Hours

Codes