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Description

A monthly cash settled container freight average price option based on the NYSHEX index administered by ICE Data Indices, LLP (“IDI”) for Asia to North Europe 40GP/HC that will automatically exercise into the settlement price of the underlying Future on the day of expiry of the options contract.

Market Specifications

Trading Screen Product Name

Container Freight Futures

Trading Screen Hub Name

Asia to North Europe 40GP/HC (NYFI)

Contract Symbol

FAN

Hedge Instrument

The delta hedge for the Asia to North Europe 40GP/HC (NYFI) Average Price Option is the Asia to North Europe 40GP/HC (NYFI) Future (FAN)

Contract Size

1 Forty Foot Equivalent Unit (FEU)

Unit of Trading

Any multiple of 1 Forty Foot Equivalent Units (FEU)

Currency

US Dollars

Trading Price Quotation

One dollar ($1) per FEU

Settlement Price Quotation

One dollar ($1) per FEU

Minimum Price Fluctuation

One dollar ($1) per FEU

Last Trading Day

Last Trading Day of the contract month

Option Style

Options are average priced and will be automatically exercised into the Asia to North Europe 40GP/HC (NYFI) Future (FAN) 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. No manual exercise is permitted.

Option Premium / Daily Margin

The Asia to North Europe 40GP/HC (NYFI) 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 per FEU equal to the final settlement price of the Asia to North Europe 40GP/HC (NYFI) Future (FAN) 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 100 Strike Prices in increments of $1 per FEU 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 $1 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 NYSHEX

MIC Code

IFEU

Clearing Venues

ICEU

Related Products

• Container FFA - Asia to US East Coast 40GP/HC (NYFI) Future
• Container FFA - Asia to US West Coast 40GP/HC (NYFI) Average Price Option
• Container FFA - Asia to US West Coast 40GP/HC (NYFI) Future
• Container FFA - North Europe to US East Coast 40GP/HC (NYFI) Future

Trading Hours

Codes