ICE Cotton No. 2
The ICE U.S. Cotton No. 2 contract is the benchmark contract for the global cotton trading community. The contract prices physical delivery of US-grown, exchange-grade product with grading performed by the U.S. Department of Agriculture, in store in exchange licensed warehouses in any of five US locations.
ICE Cotton No. 2 futures and options trade both by open outcry and by electronic trading on the ICE platform.
Uses[edit]
Uses for cotton include textiles, home furnishings, and other industrial uses such as medical supplies.
U.S. textile mills presently consume approximately 7.6 million bales of cotton a year. Eventually, about 57% of it is converted into apparel, more than a third into home furnishings and the remainder into industrial products.[1]
Data Quotes[edit]
ICE offers data quotes on a subscription basis.[2]
Contract Specifications[edit]
| Cotton No. 2 Futures | |||
|---|---|---|---|
| Trading Screen Product Name | Cotton No. 2 Futures | ||
| Trading Screen Hub Name | NYCC | ||
| Contract Symbol | CT | ||
| Contract Size | 50,000 pounds net weight | ||
| Quotation | Cents and hundredths of a cent per pound | ||
| Contract Series | March, May, July, October, December | ||
| Minimum Price Fluctuation | 1/100 of a cent (one "point") per pound equivalent to $5.00 per contract. | ||
| Settlement | Physical Delivery | ||
| Daily Price Limit | Futures contracts are subject to a daily price limit that can range from 3 to 7 cents per pound. Please consult Rule 10.09 for details[3] | ||
| Deliverable Origins | Mexico, Salvador, Guatemala, Costa Rica, Nicaragua, Kenya, Papua New Guinea, Panama, Tanzania, Uganda, Honduras, and Peru all at par, Colombia at 400 point premium, Burundi, Rwanda, Venezuela and India at 100 point discount, Dominican Republic and Ecuador at 400 point discount, and Brazil at 600 point discount. | ||
| Delivery Locations | Exchange licensed warehouse in the Ports of New York District, Virginia, New Orleans, Houston, Miami, Bremen/Hamburg, Antwerp and Barcelona.
The New York and Virginia delivery points are par; the New Orleans, Miami and Houston delivery points are at a discount of 0.50 cents per pound; and the Bremen/Hamburg, Antwerp and Barcelona delivery points are at a discount of 1.25 cents per pound. | ||
| Grade/Standards/Quality | Quality : Strict Low Middling Staple Length: 1 2/32nd inc | ||
| First Notice Day | Five business days before the first delivery day of the spot contract month, which is the first business day of that month. | ||
| Last Trading Day | Seventeen business days from end of spot month. | ||
| Last Notice Day | Twelve business days from end of spot month. | ||
| Position Limit | Position Limit and Position Accountability information for all IFUS products can be found here.[4] | ||
| Markers | TAS (Trade at Settlement)[5] | ||
| MIC Code | IFUS | ||
| Clearing Venues | ICUS | ||
| Trading Hours | CITY | TRADING | PRE-OPEN |
| NEW YORK | 4:15 AM - 1:30 PM
04:15 - 13:30 |
8:00 PM
20:00 | |
| LONDON | 9:15 AM - 6:30 PM
09:15 - 18:30 |
1:00 AM
01:00 | |
| SINGAPORE | 5:15 PM - 2:30 AM
17:15 - 02:30 |
9:00 AM
09:00 | |
| **In addition to the Pre-Open start time shown above, there will be a Post-Close Pre-Open order entry session from 2:00 pm to 6:00 pm NY time on the prior Exchange business day. | |||
| Codes | Clearing Admin Name | Coffee C | |
| Physical | KC | ||
| Logical | KC | ||
| GMI (FC) | 43 | ||
| ION A.C.N. | 2065 | ||
| Cotton No. 2 Options | |||
|---|---|---|---|
| Trading Screen Product Name | Cotton No. 2 Futures | ||
| Trading Screen Hub Name | NYCC | ||
| Contract Symbol | CT | ||
| Contract Size | 50,000 pounds net weight | ||
| Price Quotation | Cents and hundredths of a cent per pound | ||
| Contract Series | Regular Options: March, May, July, October and December; Serial Options: January, September and November. The underlying future for the September and November serial options is the December futures contract; the underlying future for the January serial option is the March futures contract | ||
| Minimum Price Fluctuation | 1/100 of a cent (one 'point') per pound | ||
| Daily Price Limit | Cotton Options trading may be halted under certain market conditions. See Rule 10.53 for details. | ||
| Strike Price Intervals | 1-cent increments for all contract months. | ||
| First Trading Day | Business day following the listing of the underlying future. | ||
| Last Trading Day | For Regular Options: Last Friday preceding the first notice day for the underlying futures by at least 5 business days
For Serial Options: Third Friday of the month in which the option expires. | ||
| Position Limit | Position Limit and Position Accountability information for all IFUS products can be found here.[6] | ||
| MIC Code | IFUS | ||
| Clearing Venues | ICUS | ||
| Trading Hours | CITY | TRADING | PRE-OPEN |
| NEW YORK | 9:00 PM - 2:20 PM*
21:00 - 14:20 |
7:30 PM
19:30 | |
| LONDON | 2:00 AM - 7:20 PM*
02:00 - 19:20 |
12:30 AM
00:30 | |
| SINGAPORE | 10:00 AM - 3:20 AM*
10:00 - 03:20 |
8:30 AM
08:30 | |
| *Next Day | |||
| Codes | Clearing Admin Name | Cotton No 2 | |
| Physical | CT | ||
| Logical | CT | ||
| GMI (FC) | 28 | ||
| ION A.C.N. | 2205 | ||
| Weekly Cotton No. 2 Options | |||
|---|---|---|---|
| Trading Screen Product Name | Cotton No. 2 Weekly | ||
| Trading Screen Hub Name | NYCC | ||
| Contract Size | One Cotton No. 2 futures contract | ||
| Tick Size | .01 cent per lb., equivalent to $5.00 per contract | ||
| Strike Price Intervals | 1-cent per lb./100 point increments | ||
| Exercise | American style. Exercise of a Weekly Option will result in creation of a position in the underlying Cotton No. 2 future contract. | ||
| Trading Hours | ETS: 9:00 pm to 2:30 pm NY time
Floor: 10:30 am to 2:15 pm NY time | ||
| Expiration Date | Weekly Options expire on the Last Trading Day of the contract. | ||
| Last Trading Day | A specified Friday that is not also the last trade date of a monthly option contract. If such a Friday is the last trade date of a monthly option, then the Weekly Option that would expire on that Friday will not be listed for trading. | ||
| First Trading Day | Three Weekly Options will be listed at all times. A new Weekly Option will be listed on the business day following the last trade date of any Weekly Option. | ||
| Contract Symbol | CTW
The Contract Symbol shown above will be used for weekly options listed on and after September 8, 2014. For information on the symbols used prior to that date please go to IFUS_Weekly_Options_FAQ.[7] | ||
| Underlying Contract | The first listed future contract for which the monthly option on the future contract has not yet expired, with the proviso that the October futures contract is not eligible to be the underlying future on a Weekly Cotton No. 2 Option contract. | ||
| MIC Code | IFUS | ||
| Clearing Venues | ICUS | ||
| Trading Hours | CITY | TRADING | PRE-OPEN |
| NEW YORK | 9:00 PM - 2:20 PM*
21:00 - 14:20 |
7:30 PM
19:30 | |
| LONDON | 2:00 AM - 7:20 PM*
02:00 - 19:20 |
12:30 AM
00:30 | |
| SINGAPORE | 10:00 AM - 3:20 AM
10:00 - 03:20 |
8:30 AM
08:30 | |
| *Next Day | |||
| Codes | Clearing Admin Name | O-Cotton No 2 | |
| Physical | CTW | ||
| Logical | CTW | ||
| GMI (FC) | CW | ||
| ION A.C.N. | None | ||
| Cotton No. 2 1-Month Calendar Spread Options | |||
|---|---|---|---|
| Trading Screen Product Name | Cotton No. 2 1-Month CSO | ||
| Trading Screen Hub Name | NYCC | ||
| Contract Symbol | CT1 (1 Month Series)
Determining the two futures months in an CSO pair requires knowing both the Contract Symbol and the Month Symbol. CSO contract symbols are three characters long, with the first two characters denoting the futures contract for the pair and the third digit signifying how to identify the second month in the pair, which must be implied using the Month Symbol for the CSO contract. For example, the Contract Symbol “CT1” indicates the underlying contract is Cotton No. 2, and that the second month in the spread pair is ONE month forward from the front month of the pair. If the Month Symbol for an CSO contract is K10 (or May 2010), the Contract Symbol “CT1” implies that the second month in the pair is N10 (or July 2010) – one contract month forward from the K10; the Contract Symbol “CT2” would imply that the second month in the pair is V10 (or Oct 2010) – two contract months forward from the K10. | ||
| Contract Size | A spread position between the two futures contract months. | ||
| Price Quotation | Cents and hundredths of a cent per pound | ||
| Contract Series | March, May, July, October and December.
1 Month Series: each of the first four listed futures months paired with consecutive listed months | ||
| Minimum Price Fluctuation | 1/100 of a cent (one ‘point’) per pound | ||
| Daily Price Limit | None | ||
| Strike Price Intervals | 25 point increments. | ||
| First Trading Day | See Cotton Rule No. 10.71 for details. | ||
| Last Trading Day | Each OFS contract expires on the last trading day of the regular option on the earlier of the two contract months in the spread pair; for example, all OFS contracts for which the March 2011 future is the front month of the pair will expire on the ltd of the March 2011 regular option. | ||
| Call Option | Buyer of an 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 an 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 | IFUS | ||
| Clearing Venues | ICUS | ||
| Trading Hours | CITY | TRADING | PRE-OPEN |
| NEW YORK | 9:00 PM - 2:30 PM*
21:00 - 14:30 |
8:00 PM
20:00 | |
| LONDON | 2:00 AM - 7:30 PM*
02:00 - 19:30 |
1:00 AM
01:00 | |
| SINGAPORE | 10:00 AM - 3:30 AM*
10:00 - 03:30 |
9:00 AM
09:00 | |
| Codes | Clearing Admin Name | O-Cotton No 2 | |
| Physical | CT1 | ||
| Logical | CT1 | ||
| GMI (FC) | 8A | ||
| ION A.C.N. | None | ||
| Cotton No. 2 2-Month Calendar Spread Options | |||
|---|---|---|---|
| Trading Screen Product Name | Cotton No. 2 2-Month CSO | ||
| Trading Screen Hub Name | NYCC | ||
| Contract Symbol | CT2 (2 Month Series)
Determining the two futures months in an CSO pair requires knowing both the Contract Symbol and the Month Symbol. CSO contract symbols are three characters long, with the first two characters denoting the futures contract for the pair and the third digit signifying how to identify the second month in the pair, which must be implied using the Month Symbol for the CSO contract. For example, the Contract Symbol “CT1” indicates the underlying contract is Cotton No. 2, and that the second month in the spread pair is ONE month forward from the front month of the pair. If the Month Symbol for an CSO contract is K10 (or May 2010), the Contract Symbol “CT1” implies that the second month in the pair is N10 (or July 2010) – one contract month forward from the K10; the Contract Symbol “CT2” would imply that the second month in the pair is V10 (or Oct 2010) – two contract months forward from the K10. | ||
| Contract Size | A spread position between the two futures contract months. | ||
| Price Quotation | Cents and hundredths of a cent per pound | ||
| Contract Series | March, May, July, October and December.
2 Month Series: each of the first three listed futures months paired with the 2nd listed month forward from that month. | ||
| Minimum Price Fluctuation | 1/100 of a cent (one ‘point’) per pound | ||
| Daily Price Limit | None | ||
| Strike Price Intervals | 25 point increments. | ||
| First Trading Day | See Cotton Rule No. 10.71 for details. | ||
| Last Trading Day | Each OFS contract expires on the last trading day of the regular option on the earlier of the two contract months in the spread pair; for example, all OFS contracts for which the March 2011 future is the front month of the pair will expire on the ltd of the March 2011 regular option. | ||
| Call Option | Buyer of an 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 an 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 | IFUS | ||
| Clearing Venues | ICUS | ||
| Trading Hours | CITY | TRADING | PRE-OPEN |
| NEW YORK | 9:00 PM - 2:30 PM*
21:00 - 14:30 |
8:00 PM
20:00 | |
| LONDON | 2:00 AM - 7:30 PM*
02:00 - 19:30 |
1:00 AM
01:00 | |
| SINGAPORE | 10:00 AM - 3:30 AM*
10:00 - 03:30 |
9:00 AM
09:00 | |
| *Next Day | |||
| Codes | Clearing Admin Name | Cotton No 2 | |
| Physical | CT2 | ||
| Logical | CT2 | ||
| GMI (FC) | 8B | ||
| ION A.C.N. | None | ||
References[edit]
- ↑ Cotton's Major Uses. Cotton.org.
- ↑ The most valuable commodity is information. ICE.
- ↑ Cotton Rulebook. {{{org}}}.
- ↑ Position Limit and Position Accountability Information. {{{org}}}.
- ↑ TAS. {{{org}}}.
- ↑ Position Limit and Position Accountability Information. {{{org}}}.
- ↑ ICE Weekly Option Contracts. {{{org}}}.
Resources[edit]
ICE Weekly Cotton No. 2 Product Spec