- Trading Screen Product Name
- Fuel Oil Diff Futures
- Trading Screen Hub Name
- Marine 0.5% FOB Rdam Bg (Platts)/3.5% FOB Rdam Bg (Platts)
- Contract Symbol
MF5
- Hedge Instrument
The delta hedge for the Marine Fuel 0.5% FOB Rotterdam Barges
(Platts) vs 3.5% FOB Rotterdam Barges (Platts) Average Price Option
is the Marine Fuel 0.5% FOB Rotterdam Barges (Platts) vs 3.5% FOB
Rotterdam Barges (Platts) Future (MF5)
- Contract Size
1,000 metric tonnes
- Unit of Trading
Any multiple of 1,000 metric tonnes
- Currency
US Dollars and cents
- Trading Price Quotation
One cent ($0.01) per metric tonne
- Settlement Price Quotation
One tenth of one cent ($0.001) per metric tonne
- Minimum Price Fluctuation
One tenth of one cent ($0.001) per metric tonne
- Last Trading Day
Last Trading Day of the contract month
- Option Style
Options are average priced and will be automatically exercised into
the Marine Fuel 0.5% FOB Rotterdam Barges (Platts) vs 3.5% FOB
Rotterdam Barges (Platts) 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 Marine Fuel 0.5% FOB Rotterdam Barges (Platts) vs 3.5% FOB
Rotterdam Barges (Platts) 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
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 metric
tonnes equal to the average of the settlement prices of the Marine
Fuel 0.5% FOB Rotterdam Barges (Platts) vs 3.5% FOB Rotterdam
Barges (Platts) 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
This contract will support Custom Option Strikes with a minimum of
10 Strike Prices in increments of $0.25 per metric tonnes 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 60 consecutive months
- Final Payment Date
Two Clearing House Business Days following the Last Trading Day
- Business Days
Publication days for Platts European Marketscan
- MIC Code
- IFEU
- Clearing Venues
- ICEU