The ICE gC Newcastle Coal Options contract is an option on the ICE gC Newcastle Coal Futures contract. At expiry, one lot of Newcastle Coal Options will exercise into one lot of Newcastle Coal Futures. Newcastle Coal Options are European-style, such that In-The-Money options, unless abandoned, are automatically exercised at expiry. At-The-Money and Out-of-The-Money options will expire un-exercised unless the Member has elected to exercise them.
|Hedge Instrument||ICE gC Newcastle Coal Futures contract.|
|Trading Period||Up to 60 consecutive months
Quarterly, seasonal, calendar, and any period of consecutive monthly contracts can be registered as a strip. For example, a Q1 option is an option on Jan, an option on Feb, and an option on Mar, with each option expiring thirty calendar days before the start of the relevant contract month.
|Expiration Date||Trading will cease at the end of the designated Settlement Period, 16:00 - 16:15 LLT, thirty calendar days before the start of the contract period. If that day is a non-business day, expiry will be on the preceding business day. For example, on 30 November 2012 both the January 2013, Quarter 1 2013, and Calendar Year 2013 contracts will expire.|
|Contract Security||ICE Clear Europe acts as central counterparty to all trades thereby guaranteeing the financial performance of ICE Futures Europe contracts registered in the name of its Members up to and including delivery, exercise and/or settlement.|
|Trading Model||Continuous trading throughout trading hours|
|Trading Methods||Electronic futures, Exchange for Physical (EFP), Exchange for Swap (EFS) and Block Trades are available for this contract.|
|Units of Trading||1,000 metric tonnes of thermal coal|
|Minimum Trading Size||1 lot = 1,000 metric tonnes|
|Minimum Block Order||5 lots = 5,000 metric tonnes|
|Quotation||The contract price is in US Dollars and in US Dollar Cents per tonne|
|Strike Price Increments||Strike range of $70-$200 per tonne.
Multiples of $.05 per tonne.
|Minimum Price Flux||1 dollar cent per tonne|
|Minimum Tick||$0.01 per tonne.|
|Maximum Price Flux||There are no limits.|
|Position Limits||Positions are reported to the Exchange on a daily basis. The Exchange has powers to prevent the development of excessive positions or unwarranted speculation or any other undesirable situation and may take steps to resolve such situations including the ability to mandate members to limit the size of such positions or to reduce positions where appropriate.|
|Option Premium||Equity Style such that premiums are paid at the time the transaction is executed.|
|Exercise and Automatic Exercise||Expires into the ICE gC Newcastle Coal Futures contract with European-style exercise. If the option is not abandoned, automatic exercise will occur for options which are one or more ticks in the money. At-The-Money and Out-of-The-Money options will expire worthless. Members will have up to two and a quarter hours after the designated Settlement Period on the option expiry day to manually abandon or exercise an option.|
NOTE: DST in the US will be different than BST time. See Circular 14011 for temporary trading hours changes.
Clearing Admin NameCoal Newc