- Trading Screen Product Name
- Crude Futures
- Trading Screen Hub Name
- Brent Euro Option (Cash Settled)
- Contract Symbol
BUL
- Hedge Instrument
The delta hedge for the EU-Style Brent Option is the ICE Brent
Bullet Future (BNB)
- 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 tenth of one cent ($0.001) per barrel
- Minimum Price Fluctuation
One tenth of one cent ($0.001) per barrel
- Last Trading Day
Trading shall end three Business Days prior to the Expiration Date
of the ICE Brent Crude Futures contract.
If the day on which trading in the relevant EU-Style Brent Option
is due to cease would be either: (i) the Business Day preceding
Christmas Day, or (ii) the Business Day preceding New Year’s
Day, then trading shall cease on the next preceding Business Day
- Option Style
Options are European-style and will be automatically exercised 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.
- Expiry
19:30 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 settlement price of the underlying ICE Brent Bullet
Future (BNB) for the contract month. For these purposes
“settlement price” means the 3rd to last day prior to
the LTD of the ICE Brent Crude Futures contract month. When
exercised against, the Clearing House, at its discretion, selects
sellers against which to exercise on a pro rata basis
- Option Premium / Daily Margin
The premium on the EU-Style Brent Cash Settled Option is
paid/received on the day following the day of trade. Option
positions, as with Future positions, are marked-to-market daily
giving rise to positive or negative realized potential variation
margin flows. Once the premium is paid there is no additional
variation or initial margin payable by the buyer of the option. All
open contracts are marked-to-market daily. Initial Margin is
payable by the buyer and seller of the option, but for the buyer
the initial margin will not exceed the value of the premium paid.
In addition, the buyer may use the value of the premium of an
in-the-money option collateral against other ICE OTC and ICE
Futures Europe margin obligations at ICE Clear Europe.
- Strike Price Intervals
Minimum $0.50 increment strike prices. $1.00 Strikes from $20 to
$240. $0.50 strikes 20 strikes above and below ATM. The at the
money strike price is the closes interval nearest to the previous
business day’s settlement price of the underlying contract.
- Contract Series
Up to 36 consecutive months
- Final Payment Date
Two Clearing House Business Days following the Last Trading Day.
- Business Days
Publication days for ICE
- MIC Code
- IFEU
- Clearing Venues
- ICEU