- Trading Screen Product Name
- Jet Fuel Futures
- Trading Screen Hub Name
- Jet CIF NWE Cg
- Contract Symbol
JCN
- Hedge Instrument
The delta hedge for the Jet CIF NWE Cargoes (Platts) Average Price
Option is the Jet CIF NWE Cargoes Swap Future (JCN)
- Contract Size
1,000 Metric Tonnes
- Unit of Trading
Any multiple of 1,000 Metric Tonnes
- Currency
US Dollars and cents
- Trading Price Quotation
Twenty five cents ($0.25) 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 Jet CIF NWE Cargoes Swap Future 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.
- Option Premium / Daily Margin
The Jet CIF NWE Cargoes (Platts) Average Price Option is a
premium-paid-upfront option. 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 Jet CIF NWE Cargoes 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.
- Strike Price Intervals
This contract will support Custom Option Strikes with strikes in
increments of $0.25 within a range of $800 to $1,200. 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 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