ICE Futures U.S.

Crude Outright - WTI Average Price Balmo Option

Crude Outright - WTI Average Price Balmo Option46180187

Description

The WTI Average Price Balmo Option is based on the underlying WTI 1st Line Balmo Future (WBT) and will automatically exercise into the settlement price of the 1st Line Balmo Future on the day of expiry of the options contract.

Market Specifications

Trading Screen Product Name
Crude Futures (balmo)
Trading Screen Hub Name
WTI 1st Line
Commodity Code
02L-03F
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 Asian-style and will be automatically exercised 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 premium on the WTI Average Price Balmo Option is paid/received on the business day following the day of trade. Net Liquidating Value (NLV) will be re calculated each business day based on the relevant daily settlement prices. For buyers of options the NLV credit will be used to off set their Original Margin (OM) requirement; for sellers of options, the NLV debit must be covered by cash or collateral in the same manner as OM requirement. OM for all options contracts is based on the option’s delta.
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 as made public by ICE for the WTI 1st Line 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
A minimum of 20 Strike Prices in increments of $0.50 per bbl above and below the at-the-money Strike Price. Strike Price boundaries are adjusted according to futures price movements. User-defined Strike Prices are allowed in $0.50 increments.
Contract Series
Up to 2 consecutive months
Final Payment Date
Two Clearing House Business Days following the Last Trading Day
Business Days
Publication days for ICE
MIC Code
IFED
Clearing Venues
ICEU