ICE Futures U.S.

Heating Oil Diff - EU-Style Heating Oil vs Low Sulphur Gasoil Options

Heating Oil Diff - EU-Style Heating Oil vs Low Sulphur Gasoil Options42950218


A monthly cash settled option based on the difference between the ICE daily settlement price for Heating Oil Futures and the ICE daily settlement price for ICE Low Sulphur Gasoil Bullet Futures

Market Specifications

Trading Screen Product Name
Heating Oil Diff Futures
Trading Screen Hub Name
HO/LS GO Euro Option (Cash Settled)
Commodity Code
Contract Size
1,000 barrels (42,000 gallons)
Unit of Trading
Any multiple of 1,000 barrels
US Dollars and cents
Trading Price Quotation
One cent ($0.01) per gallon
Settlement Price Quotation
One hundredth of one cent ($0.0001) per gallon
Minimum Price Fluctuation
One hundredth of one cent ($0.0001) per gallon
Last Trading Day
Trading shall end one business day prior to the Expiration Date of the ICE Heating Oil Futures contract
Option Style
Options are European-style and will be automatically exercised 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 EU-Style Heating Oil vs Low Sulphur Gasoil 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
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 gallon equal to the difference between the settlement prices as made public by ICE for the Heating Oil Futures contract and the ICE Low Sulphur Gasoil Bullet Futures contract on the Last Trading Day. When exercised against, the Clearing House, at its discretion, selects sellers against which to exercise on a pro-rata basis.

conversion factor: 1 metric tonne = 312.9 gallons
Strike Price Intervals
A minimum of 10 strikes above and below at the money in $0.01 increments will be listed at launch. This contract will support Custom Option Strikes with strikes in increments of $0.001 within a range of -$1.00 to $1.00. These ranges 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 ICE
MIC Code
Clearing Venues