- Trading Screen Product Name
- Fuel Oil Futures
- Trading Screen Hub Name
- 3.5% FOB Rdam Bg
- Contract Symbol
BAR
- Hedge Instrument
The delta hedge for the 3.5% FOB Rotterdam Barges Average Price
Option is the 3.5% FOB Rotterdam Barges Swap Future (BAR).
- 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 Asian-style and will be automatically exercised on the
expiry day if they are "in the money". The Swap 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
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 metric
tonne based on the average of the assessment prices of the Platts
3.5% FOB RDAM Barges Swap 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.
- Option Premium / Daily Margin
The 3.5% FOB RDAM Barges 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.
- Strike Price Intervals
A minimum of 10 strikes above and below at the money in $1.00
increments will be listed at launch. This contract will support
Custom Option Strikes with strikes in increments of $0.25 within a
range of $150 to $900. These ranges may be revised from time to
time according to future price movements. The at-the-money strike
price is the closest interval nearest to the previous business
day's settlement price of the underlying contract.
- Contract Series
Up to 60 consecutive months
- Final Payment Date
Two Clearing House Business Days following the Last Trading Day.
- Business Days
Publication days for Platts European Marketscan
- MIC Code
- IFEU
- Clearing Venues
- ICEU