The CER Options Contract is an option on the CER Futures Contract.
At expiry, one lot of CER Options will exercise into one lot of CER
Futures. CER Options are European style such that it is
automatically exercised at expiry in the money.
Units of Trading
One ICE Futures CER Options contract.
Minimum Trading Size
Euro (€) and Euro cent (c) per metric tonne.
Strike Price Increments
A range of one-hundred and nine strike prices are automatically
listed for each contract month covering the price range from
€1.00 - €55.00. The Exchange may add one or more strike
prices nearest to the last price listed as necessary. Strike price
intervals are €0.01.
Minimum Price Flux
Maximum Price Flux
Up to 12 contract months are listed on a quarterly expiry (March,
June, September and December), with 3 new contract months listed on
expiry of the December contract. Additional December contracts are
listed through 2015.
The underlying contract is the December Future of the relevant
year. For example, the underlying for the Mar 2010 option is the
Dec 2010 Future.
Premiums are paid at the time of the transaction.
There are no limits.
Three Exchange Trading Days before the expiry of the corresponding
March, June, September or December contract month of the CER
ICE Clear Europe Limited guarantees the financial performance of all ICE Futures contracts registered in the name of its members.
All open contracts are marked-to-market daily.
Trading occurs on ICE Futures' electronic trading platform (known as the ICE Platform) which is accessible via Web ICE or through a conformed Independent Software Vendor.
Continuous trading throughout trading hours.
Trade weighted average of trades executed during the daily designated settlement period (16:50:00 - 16:59:59 UK Local Time) in accordance with Trading Procedure 2.4.9.
VAT & Taxes
UK's HM Revenue and Customs has confirmed that the trading of the
CER Options Contract on the Exchange between the Member and ICE
Clear Europe Limited has been granted interim approval to be
zero-rated for VAT purposes under the terms of the Terminal Markets
Exercise and Automatic Exercise
CER Options will be exercised into CER Futures contracts and are of
European-style exercise, such that at expiry automatic exercise
will occur of options which are one or more ticks in the money.
(At-the-money and out-of the-money options will lapse).
18:00 UK Time
ICE Clear Europe Limited will act as central counterparty to all trades.