- Trading Screen Product Name
- Biofuel Futures
- Trading Screen Hub Name
- D4 RINs (OPIS)
- Contract Symbol
RIK
- Hedge Instrument
The delta hedge for the D4 RINs (OPIS) Average Price Option is the
D4 RINs (OPIS) Future (RIN)
- Contract Size
50,000 RINs
- Unit of Trading
Any multiple of 50,000 RINs
- Currency
US Dollars and cents.
- Trading Price Quotation
One hundredth of one cent ($0.0001) per RIN.
- Minimum Price Fluctuation
One hundredth of one cent ($0.0001) per RIN.
- Settlement Price Quotation
One hundredth of one cent ($0.0001) per RIN.
- Last Trading Day
Last Trading Day of the contract month.
- Option Style
Options are average priced and will be automatically exercised into
the D4 RINs (OPIS) 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 D4 RINs (OPIS) Average Price Options are premium-paid-upfront
options. 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
19:30 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 barrel
equal to the average of the settlement prices of the D4 RINs (OPIS)
Future for the contract month. The reference price will be a price
in USD and cents per RIN equal to the Final Settlement price of the
D4 RINs (OPIS) 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 Increments
A minimum of 20 Strike Prices in increments of $0.0001 per RIN
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 $0.0001 increments.
- Contract Series
Up to 60 consecutive months, or as otherwise determined by the
Exchange
- MIC Code
- IFED
- Clearing Venues
- ICEU