- Trading Screen Product Name
- Naphtha Crack Futures (bbl)
- Trading Screen Hub Name
- Naphtha CIF NWE Cg (Platts)/Brent 1st Line
- Contract Symbol
NBB
- Hedge Instrument
The delta hedge for the Naphtha CIF NWE Cargoes (Platts) vs Brent
1st Line Average Price Option (in Bbls) is the Naphtha CIF NWE
Cargoes (Platts) vs Brent 1st Line Future (in Bbls) (NBB).
- 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 hundredth of one cent ($0.0001) per barrel
- Minimum Price Fluctuation
One hundredth of one cent ($0.0001) 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 Naphtha CIF NWE Cargoes (Platts) vs Brent 1st Line Future (in
Bbls) (NBB) 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 Naphtha CIF NWE Cargoes (Platts) vs Brent 1st Line Average
Price Options (in Bbls) are premium-paid-upfront options. 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.
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 Naphtha CIF NWE
Cargoes (Platts) vs Brent 1st Line Future (in Bbls) for the
contract month.
Conversion factor: 1 metric tonne = 8.90 barrels
When exercised against, the Clearing House, at its discretion,
selects sellers against which to exercise on a pro-rata basis.
- Strike Price Increments
A minimum of 10 Strike Prices in increments of $0.01 per barrel
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 $0.01 increments.
- Contract Series
Up to 48 consecutive months
- Final Payment Date
Two Clearing House Business Days following the Last Trading Day
- Business Days
Publication days for Platts European Marketscan and ICE
- MIC Code
- IFEU
- Clearing Venues
- ICEU