B
1,000 barrels
Any multiple of 1,000 barrels
US Dollars and cents
One cent ($0.01) per barrel
One cent ($0.01) per barrel
One cent ($0.01) per barrel
Trading shall cease at the end of the designated settlement periodon the last Business Day of the second month preceding the relevantcontract month (e.g. the March contract month will expire on thelast Business Day of January).
If the day on which trading is due to cease would be either: (i)the Business Day preceding Christmas Day, or (ii) the Business Daypreceding New Year’s Day, then trading shall cease on thenext preceding Business Day
ICE Clear Europe acts as the central counterparty for trades conducted on the London exchanges. This enables it to guarantee the financial performance of every contract registered with it by its members (the clearing members of the exchanges) up to and including delivery, exercise and/or settlement. ICE Clear Europe has no obligation or contractual relationship with its members' clients who are non-member users of the exchange markets, or non-clearing members of the exchanges.
The weighted average price of trades during a two minute settlementperiod from 19:28:00, London time.
All open contracts are marked-to-market daily.
The Brent crude future is a cash-settled contract. The Exchange'sdaily position management regime requires that all positions in anycontract month must be reported to the exchange on a daily basis.The Exchange has powers to prevent the development of excessivepositions or unwarranted speculation or any other undesirablesituation and may take any steps necessary to resolve suchsituations including the ability to mandate members to limit thesize of such positions or to reduce positions where appropriate
The Exchange may impose limits on positions in this contract at itsdiscretion in accordance with Exchange Rule P3.
Current expiry limit: 7,000 contracts in the last five businessdays, up to and including the expiry day in the spot month,inclusive of futures-equivalent position in Brent Options.
Exemptions from expiry limits may be granted at theExchange’s discretion to participants who provide anddocument a commercial rationale for their requirement
Up to 96 consecutive months
Electronic futures, Exchange of futures for physical (EFP), Exchange of futures for swap (EFS) and Block Trades are available for this contract.
The ICE Brent Crude futures contract is a deliverable contractbased on EFP delivery with an option to cash settle against the ICEBrent Index price for the last trading day of the futures contract.The Exchange shall publish a cash settlement price (the ICE BrentIndex price) on the next trading day following the last trading dayfor the contract month.
"NCR: 0.50;
RL: 0.75
IPL: 1.00, 3 second recalculation and 5 second hold periods.
To access NCR documentation click here
TAS (Trade at Settlement)
MM (Minute Marker)
Sing MM (Singapore Minute Marker)
ICE Business Days
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Now, let's delve into the details of the article you provided, focusing on the concepts and terms mentioned:
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Trading Screen Product Name: Brent Crude Futures
- Brent Crude is a specific type of crude oil used as a major trading benchmark.
- The term "futures" indicates a financial contract obligating the buyer to purchase, or the seller to sell, a specific quantity of the commodity at a predetermined price on a specified future date.
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Trading Screen Hub Name: North Sea
- The North Sea serves as the hub for trading Brent Crude Futures, highlighting its significance in the global oil market.
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Contract Symbol: B
- "B" is the symbol used to represent Brent Crude Futures.
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Contract Size: 1,000 barrels
- Each contract represents 1,000 barrels of Brent Crude.
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Unit of Trading: Any multiple of 1,000 barrels
- Traders can engage in multiples of 1,000 barrels when buying or selling.
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Currency: US Dollars and cents
- The trading and settlement currency for Brent Crude Futures is in US Dollars and cents.
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Trading Price, Settlement Price, Minimum Price Fluctuation: $0.01 per barrel
- The trading price, settlement price, and minimum price fluctuation are all set at $0.01 per barrel.
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Expiration Date: Last Business Day of the second month preceding the relevant contract month
- Trading ceases at the end of the designated settlement period on the last Business Day of the second month preceding the relevant contract month.
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Contract Security: ICE Clear Europe
- ICE Clear Europe acts as the central counterparty, ensuring financial performance and clearing responsibilities for trades conducted on the London exchanges.
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Daily Settlement: Weighted average price during a two-minute settlement period from 19:28:00, London time
- The daily settlement process involves calculating the weighted average price during a specific time frame.
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Daily Margin: Marked-to-market daily for all open contracts
- The daily margin is calculated by marking all open contracts to market on a daily basis.
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Position Limit: The Exchange's daily position management regime
- Positions in any contract month must be reported daily, and the exchange has the authority to manage positions to prevent excessive speculation.
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Expiry Limits: Imposed by the Exchange at its discretion
- The Exchange may impose limits on positions, and the current expiry limit is 7,000 contracts in the last five business days.
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Contract Series: Up to 96 consecutive months
- Trading is available for up to 96 consecutive months.
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Trading Methods: Electronic futures, EFP, EFS, and Block Trades
- Various trading methods, including electronic futures, Exchange of futures for physical (EFP), Exchange of futures for swap (EFS), and Block Trades, are available.
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Delivery/Settlement Terms: EFP delivery with an option to cash settle against the ICE Brent Index price
- The ICE Brent Crude futures contract is deliverable based on EFP delivery, with a cash settlement option against the ICE Brent Index price.
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NCR, RL, and IPL Levels: Market parameters for recalculation and hold periods
- NCR (0.50), RL (0.75), IPL (1.00), with 3-second recalculation and 5-second hold periods.
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Markers: TAS (Trade at Settlement), MM (Minute Marker), Sing MM (Singapore Minute Marker)
- Different markers, including TAS, MM, and Sing MM, are used in trading.
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Business Days: ICE Business Days
- Trading activities are conducted on ICE Business Days.
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MIC Code and Clearing Venues: IFEU, ICEU
- MIC Code (Market Identifier Code) IFEU and clearing venues ICEU are part of the trading infrastructure.
In conclusion, the Brent Crude Futures contract operates within a well-defined framework, encompassing aspects of contract specifications, trading mechanisms, and risk management. The market relies on a robust infrastructure provided by entities like ICE Clear Europe, and adherence to daily settlement and position limits ensures the integrity of the trading environment.
