- Trading Screen Product Name
- Crude Futures
- Trading Screen Hub Name
- Argus WTI Houston 1st Line
- Contract Symbol
AFW
- Hedge Instrument
The delta hedge for the Argus WTI Houston Average Price Option is
the Argus WTI Houston Future.
- 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 tenth of one cent ($0.001) per barrel
- Minimum Price Fluctuation
One tenth of one cent ($0.001) 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 Argus WTI Houston Future 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 Argus WTI Houston Average Price Option 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
19:30 London Time (14:30 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 Argus WTI Houston 1st line 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
Minimum $0.50 increment strike prices. $1.00 Strikes from $20 to
$240. $0.50 strikes 20 strikes above and below ATM. The “at
the money” strike price is the closes interval nearest to the
previous business day’s settlement price of the underlying
contract.
- Contract Series
Up to 60 consecutive months
- Final Payment Date
Two Clearing House Business Days following the Last Trading Day
- Business Days
Publication days for Argus Crude
- MIC Code
- IFED
- Clearing Venues
- ICEU