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ICE Futures Europe

Gasoil Outright – Low Sulphur Gasoil Micro Average Price Option

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Description

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

Market Specifications

Trading Screen Product Name
Gasoil Futures
Trading Screen Hub Name
LS GO 1st Line Micro
Contract Symbol
GNT
Hedge Instrument
The delta hedge for the Low Sulphur Gasoil Micro Average Price Option is the Low Sulphur Gasoil 1st Line Micro Future (GNT).
Contract Size
10 metric tonnes
Unit of Trading
Any multiple of 10 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 Low Sulphur Gasoil 1st Line Micro Future (GNT) 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 Low Sulphur Gasoil 1st Line Micro Average Price Options 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
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 average of the settlement prices of the Low Sulphur Gasoil 1st Line Micro 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 Increments
A minimum of 10 Strike Prices in increments of $0.25 per metric tonne 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 74 consecutive months
Final Payment Date
Two Clearing House Business Days following the Last Trading Day
Business Days
Publication days for ICE
MIC Code
IFEU
Clearing Venues
ICEU

Trading Hours

CityTradingPre-Open
New York12:50 AM - 11:00 PM
00:50 - 23:00
12:40 AM
00:40
London5:50 AM - 4:00 AM
05:50 - 04:00
5:40 AM
05:40
Singapore12:50 PM - 11:00 AM
12:50 - 11:00
12:40 PM
12:40

Sunday Pre-Open 5:10 PM ET; Closed on Saturday

Codes

Clearing Admin Name
O-Ref Outright mt
Physical
GNT
Logical
GNT
GMI (FC)
ION A.C.N.
Symbol Code
GNT