- Trading Screen Product Name
- Freight Futures (USD)
- Trading Screen Hub Name
- TC5
- Contract Symbol
WMJ
- Hedge Instrument
The delta hedge for the TC5 FFA Average Price Option is the TC5 FFA
Future (WMJ).
- Contract Size
1,000 metric tonnes
- Unit of Trading
Any multiple of 1,000 metric tonnes
- Currency
US Dollars and cents
- Trading Price
One cent ($0.01) per metric tonne
- Settlement Price
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 average priced and will be automatically exercised into
the TC5 FFA Future 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.
- Option Premium / Daily Margin
The TC5 FFA 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.
- 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 equal to the arithmetic average of the settlement prices of
the Platts TC5 FFA for the contract month. When exercised against,
the Clearing House, at its discretion, selects sellers against
which to exercise on a pro-rata basis.
- Strike Price Intervals
This contract will support Custom Option Strikes with strikes in
increments of $0.01 within a range of $5 to $50. This range 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 48 consecutive months
- Final Payment Date
Two Clearing House Business Days following the Last Trading Day
- Business Days
Publication days for Platts Clean Tankerwire
- MIC Code
- IFEU
- Clearing Venues
- ICEU