- Trading Screen Product Name
- Naphtha Crack Futures
- Trading Screen Hub Name
- Naphtha CIF NWE Cg/Brent 1st Line
- Contract Symbol
NOB
- Hedge Instrument
The delta hedge for the Naphtha CIF NWE Cargoes (Platts) vs Brent
1st Line Average Price Option is the Naphtha CIF NWE Cargoes
(Platts) vs Brent 1st Line Future (NOB)
- Contract Size
1,000 metric tonnes (8,900 bbls)
- Unit of Trading
Any multiple of 1,000 metric tonnes
- Currency
US Dollars and cents
- Trading Price Quotation
One cent ($0.01) per barrel
- Settlement Price
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 Naphtha CIF NWE Cargoes (Platts) vs Brent 1st Line 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 Naphtha CIF NWE Cargoes (Platts) vs Brent 1st Line 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 (11:30 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 Naphtha CIF
NWE Cargoes (Platts) vs Brent 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.
conversion factor: 1 metric tonne = 8.90 barrels
- Strike Price Intervals
This contract will support Custom Option Strikes with strikes in
increments of $0.01 within a range of -$10 to $25. 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
- Roll Adjust Provision
In order to use the correct Floating Price quotations, the nearby
month quotation for ICE Brent Futures specified in the Floating
Price terms above will be used except for the expiration date of
the commodity's underlying delivery month's futures contract. On
such date, the applicable pricing quotation will be rolled to the
following month's futures 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 European Marketscan and ICE
- MIC Code
- IFEU
- Clearing Venues
- ICEU