- Trading Screen Product Name
- Freight Futures (USD)
- Trading Screen Hub Name
- LGP (BLPG)
- Contract Symbol
WAT
- Hedge Instrument
The delta hedge for the LPG (BLPG) FFA Average Price Option is the
LPG (BLPG) FFA Future (WAT)
- 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 future 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 LPG FFA (BLPG) 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 LPG FFA (BLPG) 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.
- Floating Price
In respect of daily settlement, the Floating Price will be
determined by ICE using price data from a number of sources
including spot, forward and derivative markets for both physical
and financial products.
- Final Settlement
In respect of final settlement, the Floating 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.
- 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 Baltic Exchange
- MIC Code
- IFEU
- Clearing Venues
- ICEU