ICE Futures Europe

TD3C FFA Middle East Gulf to China (Baltic) Average Price Options

TD3C FFA Middle East Gulf to China (Baltic) Average Price Options67129839

Description

The TD3C FFA Average Price Option is based on the underlying TD3C FFA Future (TDL) and will automatically exercise into the settlement price of the Future on the day of expiry of the options contract.

Market Specifications

Trading Screen Product Name
Freight Futures (USD)
Trading Screen Hub Name
TD3C
Commodity Code
TDL
Hedge Instrument
The delta hedge for the TD3C FFA Average Price Option is the TD3C FFA Future (TDL)
Contract Size
1,000 Metric Tonnes
Unit of Trading
Any multiple of 1,000 metric tonnes
Currency
US Dollars and cents
Trading Price
One tenth of one cent ($0.001) per metric tonne
Settlement Price
One hundredth of one cent ($0.0001) per metric tonne
Minimum Price Fluctuation
One hundredth of one cent ($0.0001) per metric tonne
Last Trading Day
Last Trading Day of the contract month.

Note: the December contract will expire on the 24th of December or the previous business day where the 24th of December is a non-working day.
Option Style
Options are average priced and will be automatically exercised into the TD3C FFA 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 TD3C FFA 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 based on the average of the assessments as made public by the Baltic Exchange for the relevant route for each business day (as specified below) in the determination period.
Strike Price Intervals
This contract will support Custom Option Strikes with strikes in increments of $0.01 within a range of $1 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.
Contract Series
Up to 48 consecutive months
Final Payment Date
Two Clearing House Business Days following the Last Trading Day
Final Settlement
In respect of final settlement, the Floating Price will be a price in USD and cents per Metric Tonne based on the arithmetic average of the Baltic Exchange's daily assessed prices for the relevant route as made public by the Baltic Exchange for each Business Day in the determination period multiplied by the prevailing flat rate for the delivery period as published by the Worldscale Association, divided by 100 for each pricing date in the expiry month.
Business Days
Publication days for Baltic Exchange
MIC Code
IFEU
Clearing Venues
ICEU

Trading Hours

CityTradingPre-Open
New York7:50 PM - 6:00 PM*
19:50 - 18:00
7:40 PM
19:40
London12:50 AM - 11:00 PM*
00:50 - 23:00
12:40 AM
00:40
Singapore8:50 AM - 7:00 AM*
08:50 - 07:00
8:40 AM
08:40

*Next Day

Codes

Clearing Admin Name
TD3C MEGulf-Chi
Physical
TDL
Logical
TDL
GMI(FC)
R&N A.C.N.