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ICE Futures Europe

WTI American-Style Options

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Description

The ICE WTI Crude American-style Option Contract is based on the underlying ICE WTI Crude Futures Contract (T) and if exercised will result in a corresponding futures position. The Contract is for American-style exercise, allowing the buyer to exercise an option any time up to the expiry day.

Market Specifications

Trading Screen Product Name
WTI Crude Futures
Trading Screen Hub Name
WTI
Contract Symbol
T
Contract Size
1,000 barrels
Unit of Trading
Any multiple of 1,000 barrels
Currency
US Dollars and cents
Trading Price
One cent ($0.01) per barrel
Minimum Price Fluctuation
One cent ($0.01) per barrel
Settlement Price
One cent ($0.01) per barrel
Last Trading Day
Trading shall cease at the end of the designated settlement period for the underlying future on the second Trading Day prior to cessation of trading in the underlying ICE WTI Crude Futures contract.
Hedge Instrument
The delta hedge for the American-style Options is the ICE WTI Crude Future (T).
Option Premium / Daily Margin
Due to equity-style margining the premium on ICE WTI Options is paid / received on the day following the day of trade. Equity-Style Options have no daily Variation Margin payment. The premium on the Equity-style Options 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.
Exercise Procedure
ICE WTI Options can be exercised into ICE WTI Futures contracts. ICE Futures Options contracts are of American-style exercise, allowing the buyer to exercise call and/or put options up to 17:00 hours (London time) on any Trading Day (except on expiry day) during the life of the contract, by giving an exercise notice to ICE Clear Europe in respect of such options.

On expiry day, automatic exercise settings are pre-set to exercise call and put option contracts that are one minimum price fluctuation or more in-the-money and call option contracts which are at-the-money with reference to the corresponding daily settlement price at the designated settlement time as determined by the Exchange. At-the-money put options will be abandoned.
Contract Series
Up to 108 consecutive months
Strike Price Increments
At launch multiples of .01 per barrel ranging from a strike of $1 to a strike of $240. Additional strike prices are added according to futures price movements.

The at-the-money strike price is the closest interval nearest to the previous business day's settlement price of the underlying contract.
Position Reporting
The applicable position, expiry and/or accountability levels, are set forth in Table 1 of ICE Futures Europe’s Position, Expiry and Delivery Limits and Accountability Levels Guidance.
Contract Security
ICE Clear Europe acts as the central counterparty for trades conducted on ICE Futures Europe and ICE OTC. This enables it to guarantee the financial performance of every contract registered with it by its members (the clearing members of the Exchange) up to and including delivery, exercise and/or settlement. ICE Clear Europe is able to provide margin offsets between the options and the underlying futures contract as well against options positions executed in other option styles.
Business Days
ICE Business Days
Linked Future
Yes
MIC Code
IFEU
Clearing Venues
ICEU

Trading Hours

CityTradingPre-Open
New York8:00 PM - 6:00 PM*
20:00 - 18:00
7:45 PM
19:45
London1:00 AM - 11:00 PM*
01:00 - 23:00
12:45 AM
00:45
Singapore8:00 AM - 6:00 AM*
08:00 - 06:00
7:45 AM
07:45

*Next Day

London: Sunday Pre-Open 10:55 PM; Sunday Open 11:00 PM

Codes

Clearing Admin Name
O-ICE WTI
Physical
T
Logical
WBS
GMI (FC)
CS
ION A.C.N.
R755
Symbol Code
WBS