ICE Low Sulphur Gasoil

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The ICE Low Sulphur Gasoil Futures Contract is designed to provide users with an effective hedging instrument and trading opportunities. The underlying physical market for Low Sulphur Gasoil is diesel barges delivered in the ARA (Amsterdam, Rotterdam, Antwerp including Flushing and Ghent) region. It is used as the pricing reference for all distillate trading in Europe and beyond.

Low Sulphur Gasoil Futures
Trading Screen Product Name LS Gas Oil Futures
Trading Screen Hub Name ULSD-ARA
Contract Symbol G
Contract Size 100 metric tonnes
Unit of Trading One or more lots of 100 metric tonnes of low sulphur gasoil (10ppm diesel), with delivery by volume namely 118.35 cubic metres per lot being the equivalent of 100 metric tonnes of low sulphur gasoil (10ppm diesel), at a density of 0.845 kg/litre in vacuum at 15 Celsius.
Currency US Dollars and cents
Trading Price Quotation Twenty-Five cents ($0.25) per metric tonne
Settlement Price Quotation Twenty-Five cents ($0.25) per metric tonne
Minimum Price Fluctuation Twenty-Five cents ($0.25) per metric tonne
Contract Series Up to 96 consecutive months
Clearing The Clearing House guarantees financial performance of all ICE Futures contracts registered with it by its clearing members. All ICE Futures Member companies are either members of the Clearing House or have a clearing agreement with a Member who is a member of the Clearing House.
Position Limit Low Sulphur Gasoil Futures is a physically delivered contract and constraints exist on the delivery capacity of installations in the ARA region. The Exchange's daily position management regime requires that all positions in any contract month must be reported to the Exchange on a daily basis. The Exchange has powers to prevent the development of excessive positions or unwarranted speculation or any other undesirable situation and may take any steps necessary to resolve such situations including the ability to mandate members to limit the size of such positions or to reduce positions where appropriate.

During the final month of trading in a contract, the Exchange contacts holders of Low Sulphur Gasoil positions to confirm their intent and capability of making or taking delivery and may require that positions be reduced to limit position concentration, ensure price convergence with the physical market, and maintain market integrity.

Last Trading Day Trading shall cease at 12:00 hours London Time, 2 business days prior to the 14th calendar day of the delivery month.
Daily Settlement The weighted average price of trades during a two minute settlement period from 16:28:00, London time.
Final Settlement Physical delivery within the ARA region between 16th and last calendar day of the delivery month.

Physical deliveries between the months of October and March must be of winter grade quality with deliveries outside of these months (i.e. from April to September) being of summer grade quality. Full quality specifications are published in the ICE Futures Europe Rulebook (https://www.theice.com/publicdocs/contractregs/15_SECTION_J1.pdf).

NCR, RL and IPL Levels NCR: 5.00;

RL: 7.50; IPL: 7.50, 3 second recalculation and 5 second hold periods.

To access NCR documentation click here[1]

Additional Information Contracts are for the future delivery of low sulphur gasoil from the seller to the buyer into barge (or coaster up to 10,000 dwt) or by in-tank or inter-tank transfer from an Exchange Recognised Customs and Excise bonded storage installation or refinery in the Amsterdam, Rotterdam, Antwerp (ARA) area (including Flushing and Ghent) nominated by the seller and on a day nominated by the buyer within a mutually agreed 5 day delivery range between the 16th and the last calendar day of the delivery month. Quantity and quality is verified by one Exchange approved inspector selected from two nominated by the buyer. Buyers and sellers adhere to strict deadlines set out in the Exchange Contract Rules and Procedures.
Markers TAS (Trade at Settlement)[2]

MM (Minute Marker)[3]

Sing MM (Singapore Minute Marker)[4]

Business Days ICE Business Days
MIC Code IFEU
Clearing Venues ICEU
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 8:00 PM - 6:00 PM*

20:00 - 18:00

7:45 PM

19:45

LONDON 1:00 AM - 11:00 PM*

01:00 - 23:00

12:45 AM

00:45

SINGAPORE 9:00 AM - 7:00 AM*

09:00 - 07:00

8:45 AM

08:45

*Next Day
Codes Clearing Admin Name IPE e-Gas Oil
Physical G
Logical ULS
GMI (FC) GL
ION A.C.N. None
Low Sulphur Gasoil, American-Style Options
Trading Screen Product Name LS Gas Oil Futures
Trading Screen Hub Name ULSD-ARA
Hedge Instrument The delta hedge for the American-Style Option is the Low Sulphur Gasoil Future (G).
Contract Symbol G
Contract Size 100 metric tonnes
Unit of Trading One or more lots of 100 metric tonnes of low sulphur gasoil (10ppm diesel).
Currency US Dollars and cents
Trading Price Quotation Five cents ($0.05) per metric tonne
Settlement Price Quotation Five cents ($0.05) per metric tonne
Minimum Price Fluctuation Five cents ($0.05) per metric tonne
Last Trading Day Trading shall cease at the end of the designated settlement period of ICE Low Sulphur Gasoil Futures on the fifth Business Day prior to cessation of trading in the underlying ICE Low Sulphur Gasoil Futures contract.
Option Premium / Daily Margin Due to futures style margining option premiums are not paid/received at the time of the transaction. Rather margins are paid /received every day according to the changing value of the option and the total value to be paid/received is only known when the position is closed (by an opposing sale/purchase, exercise or expiry). The buyer never pays more margin than the cost of the premium. All open contracts are marked-to-market daily.
Exercise ICE Low Sulphur Gasoil Options can be exercised into ICE Low Sulphur Gasoil Futures contracts. ICE Futures Europe options contracts are of American-style exercise, allowing the buyer to exercise call and/or put options up to 17:00 (London time) hours on any Business Day (except on expiry day) during the life of the contracts, by giving an exercise notice to ICE Clear Europe in respect of such options.

On expiry day the buyer has up to one hour after the end of the designated settlement period of the ICE Low Sulphur Gasoil Futures contract to exercise the options. At that time ICE Clear Europe will automatically exercise all options that are in-the-money on behalf of the Member unless instructed otherwise by the Member.

Contract Series Up to 96 consecutive months
Strike Price Increments At launch, multiples of $0.25 per metric tonne ranging from a strike of $200 to a strike of $1750. Additional strike prices are added according to futures 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.

Position Reporting All positions are converted to futures equivalents by way of deltas and are aggregated with the futures position for daily position monitoring by the Exchange.

The Exchange's daily position management regime requires that all positions in any contract month must be reported to the Exchange on a daily basis. The Exchange has powers to prevent the development of excessive positions or unwarranted speculation or any other undesirable situation and may take any steps necessary to resolve such situations including the ability to mandate members to limit the size of such positions or to reduce positions where appropriate.

During the final month of trading in a contract, the Exchange contacts holders of Low Sulphur Gasoil positions to confirm their intent and capability of making or taking delivery and may require that positions be reduced to limit position concentration, ensure price convergence with the physical market, and maintain market integrity.

Contract Security ICE Clear Europe acts as the central counterparty for trades conducted on ICE Futures Europe and ICE OTC. This enables it to guarantee the financial performance of every contract registered with it by its members (the clearing members of the Exchange) up to and including delivery, exercise and/or settlement. ICE Clear Europe is able to provide margin offsets between the options and the underlying futures contract as well against options positions executed in other option styles.
Business Days ICE Business Days
MIC Code IFEU
Clearing Venues ICEU
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 8:00 PM - 6:00 PM*

20:00 - 18:00

7:45 PM

19:45

LONDON 1:00 AM - 11:00 PM*

01:00 - 23:00

12:45 AM

00:45

SINGAPORE 9:00 AM - 7:00 AM*

09:00 - 07:00

8:45 AM

08:45

*Next Day
Codes Clearing Admin Name IPE e-Gas Oil
Physical G
Logical ULS
GMI (FC) GL
ION A.C.N. None

Notes[edit]

References[edit]

  1. NCR documentation. {{{org}}}.
  2. TAS. {{{org}}}.
  3. MM. {{{org}}}.
  4. Sing MM. {{{org}}}.

Resources[edit]

ICE Low Sulphur Gasoil Product Spec

ICE Option on Henry Swing Product Spec