- Trading Screen Product Name
- Fuel Oil Futures
- Trading Screen Hub Name
- Marine 0.5% FOB Sing (Platts)
- Contract Symbol
MF4
- Hedge Instrument
The delta hedge for the Marine Fuel 0.5% FOB Singapore (Platts)
Average Price Option is the Marine Fuel 0.5% FOB Singapore (Platts)
Future (MF4)
- 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 cent ($0.01) per metric tonne
- Settlement Price Quotation
One tenth of one cent ($0.001) per metric tonne
- Minimum Price Fluctuation
One tenth of one cent ($0.001) 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 Marine Fuel 0.5% FOB Singapore (Platts) 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 Marine Fuel 0.5% FOB Singapore (Platts) 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
16:30 London Time (11:30 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 based on the average of the settlement prices of the Marine
Fuel 0.5% FOB Rotterdam Barges (Platts) 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 $0.25 per MT 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 $0.25 increments.
- Contract Series
Up to 72 consecutive months
- Final Payment Date
Two Clearing House Business Days following the Last Day in the
determination period.
- Business Days
Publication days for Platts Asia-Pacific/Arab Gulf Marketscan
- MIC Code
- IFEU
- Clearing Venues
- ICEU