ICE UK Electricity

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The IPE Electricity futures Contract is a deliverable contract where each Clearing Member with a position open at cessation of trading for a contract month is obliged to make or take delivery of electricity to or from National Grid Transco in accordance with the IPE Regulations. Trading Period/Strip 12 Month contracts, 6 Quarter contracts and 4 Season contracts Expiration Date Two business days prior to the first EFA calendar day of the delivery period. Contract Security LCH.Clearnet Ltd. (LCH) acts as central counterparty to all trades thereby guaranteeing the financial performance of IPE contracts registered in the name of its Members. Trading Hours 08:00 hours to 17:00 hours, Local London Time (LLT), Monday - Friday. Contract Size Minimum of 5 lots of 1 Mwh per lot of electricity per hour per day. Minimum Price Flux One tick Maximum Price Flux No limit Settlement Prices Trade weighted average during the daily closing period with Quoted Settlement Prices if low liquidity. Daily Margin All open contracts are marked-to-market daily. Margin Rates Margin rates are set by LCH.Clearnet Ltd. Position Limits There are no delivery limits. Trading Methods Exchange for physical (EFP), Exchange for swap (EFS) and Block Trades are available for this contract. Delivery/Settlement Basis Delivery is fulfilled by the debit of electricity from the Energy Account of one party and the credit of electricity to the Energy Account of the other party for every half hour settlement period of the delivery month. Delivery is effected by the submission (and acceptance with no subsequent rejection) of Energy Contract Volume Notifications by an Energy Contract Volume Notification Agent to an Energy Contract Volume Aggregation Agent on behalf of the two delivery parties. A clearing Member with a contract open at cessation of trading for that month must deliver the number of lots open at a rate of 1 MW during each settlement period of the first and each subsequent day of the delivery month. Other Information EFA Calendar - EFA blocks have an anchor point of 31/12/01 starting with 4,4,5 week cycles. Month contracts are based on the number of days in an EFA month, namely 28 days in January, February, April, May, July, August, October and November; 35 days in March, June, September, December. Exceptions are December 2004 which will have 42 days and every sixth year there is an additional week added to one of the EFA periods.


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