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Description

The Midland WTI Crude Oil 1-Month Calendar Spread Option is based on the difference between two consecutive Midland WTI (HOU) Crude Futures months.

Market Specifications

Trading Screen Product Name

Crude Futures

Trading Screen Hub Name

Midland WTI CSO 1 Month

Contract Symbol

HIA

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 end on the business day prior to the end of the designated settlement period on the expiration date of the nearby month ICE Futures Midland WTI (HOU) Futures contract.

Option Style

Options are European style, financially settled, and will be automatically exercised on the expiry day if they are “in the money”. 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. No manual exercise is permitted.

Option Premium / Daily Margin

Calendar Spread Options are equity-style and there is no daily Variation Margin payment. The premium on the Calendar Spread Option is paid/received on the business day following the day of trade. Net Liquidating Value (NLV) will be re-calculated each business day based on the relevant daily settlement prices. For buyers of options the NLV credit will be used to off-set their Original Margin (OM) requirement; for sellers of options, the NLV debit must be covered by cash or collateral in the same manner as OM requirement. OM for all options contracts is based on the ICE® Risk Model.

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 barrel equal to the difference of the nearby Midland WTI Futures contract and the settlement price of the next consecutive contract month of the Midland WTI Futures contract series on the Last Trading Day.

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 48 consecutive 1 months calendar spreads, 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 ICE

MIC Code

IFED

Clearing Venues

ICEU

Trading Hours

Codes