- Trading Screen Product Name
- Crude Futures
- Trading Screen Hub Name
- Argus LLS
- Contract Symbol
ARH
- Contract Size
1,000 barrels
- Unit of Trading
Any multiple of 1,000 barrels
- Currency
US Dollars and cents
- Trading Price Quotation
One cent ($0.01) per barrel
- Settlement Price Quotation
One tenth of one cent ($0.001) per barrel
- Minimum Price Fluctuation
One tenth of one cent ($0.001) per barrel
- Last Trading Day
Last Trading Day of the contract month
- Option Style
Options are average priced and will be automatically exercised into
the Argus LLS 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 Argus LLS 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
19:30 London Time (14:30 EST).
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 barrel
equal to the average of the settlement prices of the Argus LLS 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 $0.01 within a range of $20 to $240. 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 Argus Crude
- MIC Code
- IFED
- Clearing Venues
- ICEU