UK Natural Gas Options2554801

Description

The ICE UK Natural Gas Options contract is an option on the ICE UK Natural Gas Futures contract. At expiry, one lot of UK Natural Gas Options will exercise into one lot of UK Natural Gas Futures. UK Natural Gas 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.

Market Specifications

Trading Screen Product Name
UK Natural Gas Futures
Trading Screen Hub Name
NBP
Hedge Instrument
ICE UK Natural Gas Futures contract.
Trading Period
Up to 36 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 five 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, of the underlying futures contract five calendar days before the start of the contract month. If that day is a non-business day, expiry will occur on the nearest prior business day, except where that day is also the expiry date of the underlying futures contract, in which case expiry will be occur on the preceding business day.
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 Hours
07:00 - 17:00, Local London Time (LLT), Monday - Friday.
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.
Unit of Trading
1,000 therms of natural gas per day (1 therm = 29.3071 kilowatt hours)
Minimum Trading Size
5 lots = 5,000 therms per day
Minimum Block Order
50 lots = 50,000 therms per day
Quotation
The contract price is in Sterling and in pence per therm
Strike Price Increments
Strike range of 5.00-120.00 pence/therm.

Multiples of 0.01 pence per therm.
Minimum Price Fluctuation
Futures Screen - 0.01 pence/therm

EFPs/EFSs/Blocks - 0.001 pence/therm
Maximum Price Fluctuation
There are no limits.
Position Limit
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 UK Natural Gas 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 one and a quarter hours after the designated Settlement Period on the option expiry day to manually abandon or exercise an option.
MIC Code
IFEU
Clearing Venues
ICEU