- Trading Screen Product Name
- Fuel Oil Crack Futures (bbl)
- Trading Screen Hub Name
- Marine 0.5% FOB Rdam Bg (Platts)/Brent 1st Line (bbl)
- Contract Symbol
MFR
- Hedge Instrument
The delta hedge for the Marine Fuel 0.5% FOB Rotterdam Barges
(Platts) vs Brent 1st Line Average Price Option (in Bbls) is the
Marine Fuel 0.5% FOB Rotterdam Barges (Platts) vs Brent 1st Line
Future (in Bbls) (MFR).
- 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 hundredth of one cent ($0.0001) per barrel
- Minimum Price Fluctuation
One hundredth of one cent ($0.0001) per barrel
- 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 Rotterdam Barges (Platts) vs Brent 1st
Line Future (in Bbls) (MFR) 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 Rotterdam Barges (Platts) vs Brent 1st
Line Average Price Options (in Bbls) 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.
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 average of the settlement prices of the Marine Fuel
0.5% FOB Rotterdam Barges (Platts) vs Brent 1st Line Future (in
Bbls) for the contract month.
Conversion factor: 1 metric tonne = 6.35 barrels
When exercised against, the Clearing House, at its discretion,
selects sellers against which to exercise on a pro-rata basis.
- Strike Price Increments
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 72 consecutive months
- Final Payment Date
Two Clearing House Business Days following the Last Trading Day
- Business Days
Publication days for Platts European Marketscan and ICE
- MIC Code
- IFEU
- Clearing Venues
- ICEU