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Description

The Low Sulphur Gasoil Average Price Balmo Option is based on the underlying Low Sulphur Gasoil 1st Line Balmo Future (ULV) and will automatically exercise into the settlement price of the 1st Line Future on the day of expiry of the options contract.

Market Specifications

Trading Screen Product Name

Gasoil Futures (balmo)

Trading Screen Hub Name

LS GO 1st Line

Contract Symbol

ULV

Hedge Instrument

The delta hedge for the Low Sulphur Gasoil Average Price Balmo Option is the Low Sulphur Gasoil 1st Line Balmo Future (ULV)

Contract Size

100 Metric Tonnes

Unit of Trading

Any multiple of 100 Metric Tonnes

Currency

US Dollars and Cents

Trading Price

One cent ($0.01) per Metric Tonne

Settlement Price

One tenth of a cent ($0.001) per Metric Tonne

Minimum Price Fluctuation

One tenth of a cent ($0.001) per Metric Tonne

Last Trading Day

Last Trading Day of the contract month.

Option Style

Options are Asian-style and will be automatically exercised on the expiry day if they are “in the money”. The Swap 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 premium on the Low Sulphur Gasoil Average Price Balmo Option is paid/received on the business day following the day of trade. Net Liquidating Value (NLV) will be re calculated each business day based on the relevant daily settlement prices. For buyers of options the NLV credit will be used to off set their Original Margin (OM) requirement; for sellers of options, the NLV debit must be covered by cash or collateral in the same manner as OM requirement. OM for all options contracts is based on the option’s delta.

Expiry

19:30 London Time

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 metric tonne equal to the final settlement price as made public by ICE for the Low Sulphur Gasoil 1st Line Balmo Future for the contract month. When exercised against, the Clearing House, at its discretion, selects sellers against which to exercise on a pro-rata basis.

Strike Price Intervals

A minimum of 10 Strike Prices in increments of $10.00 per mt above and below the at-the-money Strike Price. Strike Price boundaries are adjusted according to futures price movements. User-defined Strike Prices are allowed in $0.25 increments.

Contract Series

Up to 2 consecutive calendar months

Final Payment Date

One Business Day following the Last Trading Day

Business Days

Publication days for ICE

MIC Code

IFEU

Clearing Venues

ICEU

Codes