- Trading Screen Product Name
- Freight Futures (USD)
- Trading Screen Hub Name
- USGC-UK Continent (Dirty)
- Contract Symbol
WDF
- Hedge Instrument
The delta hedge for the USGC to UK Continent FFA Average Price
Option is the USGC to UK Continent FFA Future (WDF)
- 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 hundredth of one cent ($0.0001) per metric tonne
- Settlement Price Quotation
One hundredth of one cent ($0.0001) per metric tonne
- Minimum Price Fluctuation
One hundredth of one cent ($0.0001) 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 USGC to UK Continent FFA Future (WDF) 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 USGC to UK Continent FFA 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 (14:30 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
tonne equal to the final settlement price of the USGC to UK
Continent FFA 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
A minimum of 10 Strike Prices in increments of $0.01 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 48 consecutive months
or as otherwise determined by the Exchange.
- Final Payment Date
Two Clearing House Business Days following the Last Trading Day
- Business Days
Publication days for Platts Dirty Tankerwire
- MIC Code
- IFEU
- Clearing Venues
- ICEU