London Cocoa

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The London Cocoa futures contract has long been used as the global benchmark for the pricing of physical cocoa. It is actively traded by producers, exporters, trade houses, processors and chocolate manufacturers as well as by managed funds and both institutional and short‑term investors.[1]

London Cocoa Futures
Trading Screen Product Name London Cocoa Future
Trading Screen Hub Name ICEU
Contract Symbol C
Contract Size Ten Tonnes
Price Quotation £ per metric tonne
Contract Series March, May, July, September, December, such that ten delivery months are available for trading
Minimum Price Fluctuation $1 per tonne ($10)
Settlement Physical Delivery: Standard Delivery Unit (SDU) – bagged cocoa with a nominal net weight of ten tonnes. Large Delivery Unit (LDU) – bagged cocoa with a nominal net weight of 100 tonnes. Bulk Delivery Unit (BDU) – loose cocoa with a nominal net weight of 1,000 tonnes
Delivery Locations Delivered in an Exchange Nominated Warehouse in a delivery area which is, in the Board's opinion, in or sufficiently close to Amsterdam, Antwerp, Bremen, Hamburg, Liverpool, London, Rotterdam.
Grade/Standards/Quality Standard Delivery Unit (SDU) – bagged cocoa with a nominal net weight of ten tonnes. Large Delivery Unit (LDU) – bagged cocoa with a nominal net weight of 100 tonnes. Bulk Delivery Unit (BDU) – loose cocoa with a nominal net weight of 1,000 tonnes

Where necessary upon tender, a seller may be instructed by the Clearing Services Provider to convert a Bulk Delivery Unit into Large and/or Standard Delivery Units, or a Large Delivery Unit into Standard Delivery Units

Daily Price Limit None
Deliverable Origins All African origins are ORIGIN GROUP 1 (No discount)

All other origins are ORIGIN GROUP 2 (50 GBP discount)

First Notice Day The business day immediately following the last trading day
Last Trading Day Eleven business days immediately prior to the last business day of the delivery month at 12:00
Delivery Limit Delivery limits for IFEU Softs can be found here.[2]
Markers TAS (Trade at Settlement)[3]
MIC Code IFLX
Clearing Venues ICEU
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 4:30 AM - 11:55 AM

04:30 - 11:55

8:00 PM

20:00

LONDON 9:30 AM - 4:55 PM

09:30 - 16:55

1:00 AM

01:00

SINGAPORE 5:30 PM - 12:55 AM

17:30 - 00:55

9:00 AM

09:00

Codes Clearing Admin Name Cocoa UK
Physical C
Logical C
GMI (FC) LA
ION A.C.N. None
London Cocoa Options
Trading Screen Product Name London Cocoa Future
Trading Screen Hub Name ICEU
Contract Symbol C
Contract Size One London Cocoa futures contract
Price Quotation $ per tonne
Contract Series March, May, July, September, December, such that ten expiry months are available for trading, subject to the option expiring before the underlying future
Minimum Price Fluctuation $1 per tonne ($10)
Exercise American style
Daily Price Limit None
Strike Price Intervals £25 per tonne
Expiration Date 12:00 on the last trading day in the calendar month preceding the expiry month
MIC Code IFLX
Clearing Venues ICEU
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 4:30 AM - 11:55 AM

04:30 - 11:55

None
LONDON 9:30 AM - 4:55 PM

09:30 - 16:55

None
SINGAPORE 5:30 PM - 12:55 AM

17:30 - 00:55

None
Codes Clearing Admin Name Cocoa UK
Physical C
Logical C
GMI (FC) LA
ION A.C.N. None
London Cocoa 1-Month Calendar Spread Options
Trading Screen Product Name London Cocoa 1-Month CSO
Trading Screen Hub Name ICEU
Contract Symbol C1 (one-month series)

Determining the two futures contracts in a CSO pair requires knowing both the underlying futures contract and the length of the spread. For London Cocoa CSOs, the contract code is C and the number character indicates the length of the spread.

For example, Contract Symbol “C1”, the “1” indicates that the second month in the spread pair is ONE contract delivery month forward from the front month of the pair. If the month symbol is Z19 (December 2019), the Contract Symbol “C1” implies that the second month in the pair is H20 (March 2020) – one contract delivery month forward from the Z19.

Likewise, Contract Symbol “C2”, would imply that the second month in the pair is K20 (May 2020) – two contract delivery months forward from the Z19.

Contract Size A spread position between the two London Cocoa Futures contracts
Price Quotation £ per tonne
Contract Series March, May, July, September, December.

1-month series: Each of the first nine listed futures months paired with consecutive listed months.

Minimum Price Fluctuation £1 per tonne (£10)
Daily Price Limit None
Exercise American Style
Strike Price Intervals 5-tick intervals (£5 per tonne)
Last Trading Day Each CSO contract ceases trading at 12pm on the last trading day of the regular option on the earlier of the two contract months in the spread pair; for example, all CSO contracts for which the December 2019 future is the front month of the pair will expire on the last trading day of the December 2019 regular option.
Call Option Buyer of a CSO Call Option has the right to establish a spread position of long the first month in the spread pair and short the second month in the pair, at a price difference equal to the Strike Price of the CSO contract.
Put Option Buyer of a CSO Put Option has the right to establish a spread position of short the first month in the spread pair and long the second month in the pair, at a price difference equal to the Strike Price of the CSO contract.
Strike Price The Strike Price of an CSO contract can be positive (indicating the price of the front month is above the price of the back month in the pair), negative (indicating the price of the front month is below the price of the back month in the pair) or zero (indicating the prices of the two months in the pair are the same).
MIC Code IFLX
Clearing Venues ICEU
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 4:30 AM - 11:55 AM

04:30 - 11:55

None
LONDON 9:30 AM - 4:55 PM

09:30 - 16:55

None
SINGAPORE 5:30 PM - 12:55 AM

17:30 - 00:55

None
Codes Clearing Admin Name Cocoa UK
Physical C1
Logical C1
GMI (FC) L1
ION A.C.N. None
London Cocoa 2-Month Calendar Spread Options
Trading Screen Product Name London Cocoa 2-Month CSO
Trading Screen Hub Name ICEU
Contract Symbol C2 (two-month series)

Determining the two futures contracts in a CSO pair requires knowing both the underlying futures contract and the length of the spread. For London Cocoa CSOs, the contract code is C and the number character indicates the length of the spread.

For example, Contract Symbol “C1”, the “1” indicates that the second month in the spread pair is ONE contract delivery month forward from the front month of the pair. If the month symbol is Z19 (December 2019), the Contract Symbol “C1” implies that the second month in the pair is H20 (March 2020) – one contract delivery month forward from the Z19.

Likewise, Contract Symbol “C2”, would imply that the second month in the pair is K20 (May 2020) – two contract delivery months forward from the Z19.

Contract Size A spread position between the two London Cocoa Futures contracts
Price Quotation £ per tonne
Contract Series March, May, July, September, December.

2-month series: Each of the first eight listed futures months paired with the second month forward from that month.

Minimum Price Fluctuation £1 per tonne (£10)
Daily Price Limit None
Exercise American Style
Strike Price Intervals 5-tick intervals (£5 per tonne)
Last Trading Day Each CSO contract ceases trading at 12pm on the last trading day of the regular option on the earlier of the two contract months in the spread pair; for example, all CSO contracts for which the December 2019 future is the front month of the pair will expire on the last trading day of the December 2019 regular option.
Call Option Buyer of a CSO Call Option has the right to establish a spread position of long the first month in the spread pair and short the second month in the pair, at a price difference equal to the Strike Price of the CSO contract.
Put Option Buyer of a CSO Put Option has the right to establish a spread position of short the first month in the spread pair and long the second month in the pair, at a price difference equal to the Strike Price of the CSO contract.
Strike Price The Strike Price of an CSO contract can be positive (indicating the price of the front month is above the price of the back month in the pair), negative (indicating the price of the front month is below the price of the back month in the pair) or zero (indicating the prices of the two months in the pair are the same).
MIC Code IFLX
Clearing Venues ICEU
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 4:30 AM - 11:55 AM

04:30 - 11:55

None
LONDON 9:30 AM - 4:55 PM

09:30 - 16:55

None
SINGAPORE 5:30 PM - 12:55 AM

17:30 - 00:55

None
Codes Clearing Admin Name Cocoa UK
Physical C2
Logical C2
GMI (FC) L2
ION A.C.N. None

References

  1. London Cocoa Description. {{{org}}}.
  2. IFEU Softs Delivery Limits. {{{org}}}.
  3. TAS. {{{org}}}.

Resources

ICE London Cocoa Product Spec

ICE London Cocoa 1-Month Calendar Spread Product Spec

ICE London Cocoa 2-Month Calendar Spread Product Spec

Notes