ICE Futures Europe

Low Sulphur Gasoil Average Price Option

Low Sulphur Gasoil Average Price Option11533817

Description

The Low Sulphur Gasoil Average Price Option is based on the underlying ICE Low Sulphur Gasoil 1st Line Future (ULA) and will automatically exercise into the settlement price of the 1st Line Future on the day of expiry of the options contract.

Market Specifications

Trading Screen Product Name
Gasoil Futures
Trading Screen Hub Name
LS GO 1st Line
Commodity Code
ULA
Hedge Instrument
The delta hedge for the Low Sulphur Gasoil Average Price Option is the ICE Low Sulphur Gasoil 1st Line Swap Future (ULA)
Contract Size
100 metric tonnes
Unit of Trading
Any multiple of 100 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
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 metric tonne based on the average of the settlement prices as made public by ICE for the Low Sulphur Gasoil 1st Line 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 premium on the Low Sulphur Gasoil Average Priced Option is paid/received on the business day following the day of trade. Net Liquidating Value (NLV) will be re calculated each business day based on the relevant daily settlement prices. For buyers of options the NLV credit will be used to off set their Original Margin (OM) requirement; for sellers of options, the NLV debit must be covered by cash or collateral in the same manner as OM requirement. OM for all options contracts is based on the option’s delta.
Strike Price Intervals
Minimum $5.00 increment strike prices. $10.00 Strikes from $200 to $1000. $5.00 strikes 20 strikes above and below the 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 60 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

Trading Hours

CityTradingPre-Open
New York7:50 PM - 6:05 PM
19:50 - 18:05
7:40 PM
19:40
London12:50 AM - 11:05 PM
00:50 - 23:05
12:40 AM
00:40
Singapore7:50 AM - 6:05 AM
07:50 - 06:05
7:40 AM
07:40

Sunday Pre-Open 5:40 PM ET; Closed on Saturday

Codes

Clearing Admin Name
Ref Outright mt
Physical
ULA
Logical
ULS
GMI(FC)
R&N A.C.N.