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Description

The ICE West Texas Intermediate Light Sweet (‘WTI’) Crude Weekly American-style Option contract is based on the underlying ICE WTI Crude Futures Contract (T) and will automatically exercise into corresponding future. The Weekly Options are short-life, American-style options that match the terms of the monthly option on the IFEU futures contract.

The contract tenors available for trading will include all US business days falling within the four consecutive weeks contract series. What this means is that in the four consecutive week period there will be a rolling contract tenor listing every single business day. Once a prompt tenor expires then an additional tenor will be added to the back of the four consecutive week contract series, assuming it is a business day.

Market Specifications

Trading Screen Product Name

WTI Crude Weekly

Trading Screen Hub Name

WTI

Hedge Instrument

The delta hedge for the WTI Crude Weekly American-style Option is the ICE WTI Crude Future (T).

Contract Symbol

WAW

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 cent ($0.01) per barrel

Minimum Price Fluctuation

One cent ($0.01) per barrel

Last Trading Day

Trading shall cease at the end of the designated settlement period of the ICE Futures West Texas Intermediate Light Sweet Crude Oil Futures Contract on each day an ICE Futures West Texas Intermediate Light Sweet Crude Oil Weekly Options contract is made available.

Option Style

The option is an American-style option which can be exercised on any business day prior to and until expiration day.

Option Premium / Daily Margin

Due to equity-style margining, the premium on ICE WTI Options is paid/received on the day following the day of trade. Equity-Style Options have no daily Variation Margin payment. The premium on the Equity-style Options 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.

Expiry

ICE WTI Crude Weekly American-style Options will be exercised into corresponding ICE WTI Crude Futures contracts. On expiry day, automatic exercise settings are pre-set to exercise call and put option contracts that are one minimum price fluctuation or more in-the-money and call option contracts which are at-the-money with reference to the corresponding daily settlement price at the designated settlement time as determined by the Exchange. At-the-money put options will be abandoned.

Strike Price

This contract will support Custom Option Strikes of $0.01/bbl above and below the at-the-money Strike Price. Strike price boundaries are adjusted 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.

Contract Series

Four consecutive weeks.

If the scheduled cessation of trading day for an ICE Futures West Texas Intermediate Light Sweet Crude Oil Weekly Options contract coincides with the scheduled cessation of trading of the monthly ICE Futures West Texas Intermediate Light Sweet Crude Oil Options Contract then the Weekly Option will be exercisable into the second month ICE West Texas Intermediate Light Sweet Crude Oil Futures contract

If the cessation of trading day is not a US business day then the relevant ICE Futures West Texas Intermediate Light Sweet Crude Oil Weekly Options contract will not be made available for trading.

Final Payment Date

Two Clearing House Business Days following the Last Trading Day

Business Days

ICE Business Days

MIC Code

IFEU

Clearing Venues

ICEU

Trading Hours

Codes