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ICE Futures Europe

Midland WTI American Gulf Coast Options

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Description

The Midland WTI American Gulf Coast American-style Option Contract is based on the underlying Midland WTI American Gulf Coast Futures Contract (HOU) and if exercised will result in a corresponding futures position. The contract is for American-style exercise, allowing the buyer to exercise an option any time up to the expiry day.

Market Specifications

Trading Screen Product Name
Midland WTI Futures
Trading Screen Hub Name
Midland WTI
Hedge Instrument
The delta hedge for the American-style Option is the Midland WTI American Gulf Coast Future (HOU).
Contract Symbol
HOU
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
Trading shall cease at the end of the designated settlement period for the underlying future on the third Trading Day prior to cessation of trading in the underlying Midland WTI American Gulf Coast futures contract. In the event that the official Exchange holiday schedule changes subsequent to the listing of a Crude Oil futures, the originally listed expiration date shall remain in effect. In the event that the originally listed expiration day is declared a holiday, expiration will move to the business day immediately prior.
Option Premium / Daily Margin
Due to equity-style margining the premium on Midland WTI American Gulf Coast Options is paid / received on the day following the day of trade. Equity-Style Options have no daily Variation Margin payment. The premium on the Equity-style Options 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.
Exercise Procedure
Midland WTI American Gulf Coast Options can be exercised into Midland WTI American Gulf Coast Futures contracts. Options contracts are of American-style exercise, allowing the buyer to exercise call and/or put options up to 17:00 hours (London time) on any Trading Day (except on expiry day) during the life of the contract, by giving an exercise notice to ICE Clear Europe in respect of such options. On expiry day, automatic exercise settings are pre-set to exercise call and put option contracts that are one minimum price fluctuation or more in-the-money and call option contracts which are at-the-money with reference to the corresponding daily settlement price at the designated settlement time as determined by the Exchange. At-the-money put options will be abandoned and call options will be exercised.
Strike Price Increments
This contract will support Custom Option Strikes of $0.01/bbl above and below the at-the-money Strike Price. Strike price boundaries are adjusted according to futures 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 108 consecutive months
Business Days
US business days.
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
Singapore7:50 AM - 6:00 AM*
07:50 - 06:00
7:40 AM
07:40

*Next Day

Sunday Pre-Open 5:40 PM ET; Closed on Saturday

Codes

Clearing Admin Name
O-Permian WTI
Physical
HOU
Logical
HOU
GMI (FC)
LY
ION A.C.N.
Symbol Code
HOU