- Trading Screen Product Name
- Fuel Oil Futures (mt)
- Trading Screen Hub Name
- Marine 0.5% FOB USGC Bg (Platts)
- Contract Symbol
MF9
- Hedge Instrument
The delta hedge for the Marine Fuel 0.5% FOB USGC Barges (Platts)
Average Price Option (in MTs) is the Marine Fuel 0.5% FOB USGC
Barges (Platts) Future (in MTs) (MF9)
- 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 tonnes
- Settlement Price Quotation
One tenth of one cent ($0.001) per metric tonnes
- Minimum Price Fluctuation
One tenth of one cent ($0.001) per metric tonnes
- 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 USGC Barges (Platts) Future (in MTs) 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 USGC Barges (Platts) Average Price Options
(in MTs) 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
tonnes based on the average of the settlement prices of the Marine
Fuel 0.5% FOB USGC Barges (Platts) Future (in MTs) 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
This contract will support Custom Option Strikes with a minimum of
10 Strike Prices in increments of $0.25 per metric tonnes 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 60 consecutive months
- Final Payment Date
Two Clearing House Business Days following the Last Day in the
determination period.
- Business Days
Publication days for Platts US Marketscan
- MIC Code
- IFED
- Clearing Venues
- ICEU