- Trading Screen Product Name
- California LCFS Futures
- Trading Screen Hub Name
- CA LCFS
- Contract Symbol
CCF
- Hedge Instrument
The delta hedge for the ICE California Low Carbon Fuel Standard
European-style Option Contract is the ICE California Low Carbon
Fuel Standard Futures Contract (CCF).
- Contract Size
100 LCFS Credits (where 1 LCFS Credit is 1 MT)
- Unit of Trading
Any multiple of 100 LCFS Credits
- Currency
US Dollars and cents
- Trading Price Quotation
$0.25 per LCFS Credit
- Settlement Price Quotation
The price quotation convention shall be twenty-five cents ($0.25)
per LCFS Credit; minimum price fluctuation may vary by trade type.
- Minimum Price Fluctuation
The price quotation convention shall be Twenty-Five cent ($0.25)
per LCFS Credit; minimum price fluctuation may vary by trade type.
- Last Trading Day
Trading shall cease at the end of the designated settlement period
of the ICE California Low Carbon Fuel Standard Futures Contract on
the 15th calendar day of the delivery month. If the 15th calendar
day is not a US business day, then trading shall cease on the first
US business day following the 15th calendar day of the delivery
month.
- Option Style
The option is a European-style option and will be automatically
exercised on the Last Trading Day if “in the money”.
The exercise of an ICE California Low Carbon Fuel Standard
European-style Option Contract will give rise to an ICE California
Low Carbon Fuel Standard Futures Contract between Buyer and Seller,
in the corresponding contract month, at the strike price of the
Option Contract.
- Option Premium / Daily Margin
Due to futures-style margining, option premiums are not
paid/received at the time of the transaction. Rather margins are
paid/received every day according to the changing value of the
option and the total value to be paid/received is only known when
the position is closed (by an opposing sale/purchase, exercise or
expiry).
The buyer never pays more margin than the cost of the premium. All
open contracts are marked-to-market daily.
- Exercise Procedure
The ICE California Low Carbon Fuel Standard European-style Option
will be automatically exercised into the ICE California Low Carbon
Fuel Standard Future if in the money. Members will have up to 90
minutes after cessation of trading on the option expiry day to
manually abandon or exercise an option that is at the money or out
of the-money. Unactioned at the money and out of the-money options
will automatically expire worthless.
- Strike Price Intervals
A minimum of ten Strike Prices in increments of $1.00 per LCFS
Credit above and below the at the money Strike Price. The at the
money strike price is the closest interval nearest to the previous
Trading Day’s Daily Settlement Price of the ICE California
Low Carbon Fuel Standard Future.
Additional strike prices are added according to futures price
movements.
- Contract Series
Up to 72 consecutive months
- Strike Price Increments
A minimum of ten Strike Prices in increments of $1.00 per LCFS
Credit above and below the at the money Strike Price. The at the
money strike price is the closest interval nearest to the previous
Trading Day’s Daily Settlement Price of the ICE California
Low Carbon Fuel Standard Future. Additional strike prices are added
according to futures price movements.
- Business Days
ICE Business Days
- MIC Code
- IFED
- Clearing Venues
- ICEU