- Trading Screen Product Name
- Crude Diff Futures (Trade Month)
- Trading Screen Hub Name
- Argus WTI Houston/Argus WTI Mid
- Contract Symbol
MSN
- Hedge Instrument
The delta hedge for the Argus WTI Houston vs Argus WTI Midland
Trade Month Average Price Option is the Argus WTI Houston vs Argus
WTI Midland Future (MSN).
- 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
Trading shall cease at the close of trading on the last business
day that falls on or before the 25th calendar day of the month
prior to the contract month. If the 25th calendar day is a weekend
or holiday, trading shall cease on the first business day prior to
the 25th calendar day.
- Option Style
Options are averaged price and will be automatically exercised into
the Argus WTI Houston vs Argus WTI Midland Trade Month 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 vs Argus WTI Midland Trade Month 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.
- Strike Price Intervals
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 60 consecutive months
- Business Days
Publication days for Argus Crude
- MIC Code
- IFED
- Clearing Venues
- ICEU