IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced the launch of ICE Low Sulphur Gasoil Futures and Options contracts on ICE Futures Europe. ICE also announced the introduction of 13 OTC Low Sulphur Gasoil Swaps cleared by ICE Clear Europe.
All of the new contracts will be available for the trade date of Monday 19 September 2011 and are subject to regulatory approval.
The ICE Low Sulphur Gasoil Futures contract will be based on a 0.001% sulphur (10ppm) diesel barge specification and will trade from the January 2012 contract and delivery month, out to December 2016. The existing ICE Gasoil Futures contract will continue to trade as per its current 0.1% sulphur (1,000ppm) specification, up to and including January 2015.
David Peniket, president & coo, ICE Futures Europe said: “We are pleased to announce the launch of ICE Low Sulphur Gasoil Futures, which follows an extensive consultation period with market participants. The contract will meet long term hedging requirements in the global distillate market, and especially in Europe which is increasingly moving towards a low sulphur, 10ppm diesel grade.”
The full list of new low sulphur gasoil contracts, available for the trade date of Monday 19 September 2011, is as follows:
• Gasoil Outright — ICE Low Sulphur Gasoil Futures (ULS)
• Gasoil Outright — ICE Low Sulphur Gasoil American-Style Options (ULS)
• Gasoil Outright – Low Sulphur Gasoil 1st Line Swap (ULA)
• Gasoil Diff – Low Sulphur Gasoil 1st Line Swap vs. Gasoil 1st Line Swap (ULB)
• Gasoil Crack (mt) – Low Sulphur Gasoil 1st Line vs. Brent 1st Line Swap (mt) (ULC)
• Gasoil Crack (bbl) – Low Sulphur Gasoil 1st Line vs. Brent 1st Line Swap (bbl) (ULD)
• Diesel Diff – Diesel 10ppm FOB RDAM Barges vs. Low Sulphur Gasoil 1st Line Swap (ULE)
• Diesel Diff – ULSD 10 ppm CIF NWE Cargoes vs. Low Sulphur Gasoil 1st Line Swap (ULF)
• Diesel Diff – Diesel 10ppm CIF NWE (Le Havre) Cargoes vs. Low Sulphur Gasoil 1st Line Swap (ULG)
• Gasoil Diff – Gasoil 50 ppm FOB RDAM Barges vs. Low Sulphur Gasoil 1st Line Swap (ULH)
• Diesel Diff – ULSD 10 ppm CIF MED Cargoes vs. Low Sulphur Gasoil 1st Line Swap (ULI)
• Jet Diff – Jet CIF NWE Cargoes vs. Low Sulphur Gasoil 1st Line Swap (ULJ)
• Jet Diff – Jet FOB RDAM Barges vs. Low Sulphur Gasoil 1st Line Swap (ULK)
• HO GO Arb (mt) – Heating Oil 1st line vs. Low Sulphur Gasoil 1st Line Swap (mt) (ULL)
• HO GO Arb (bbl) – Heating Oil 1st line vs. Low Sulphur Gasoil 1st Line Swap (bbl) (ULM)
All of the diesel differential and jet differential swaps, as well as the Gasoil Diff – Gasoil 50ppm FOB RDAM Barges vs. Low Sulphur Gasoil 1st Line Swap, reference Platts European MarketScan.
With the OTC products announced today, ICE will offer more than 560 cleared OTC energy contracts. ICE Clear Europe provides a new product development platform in ICE’s global energy futures and OTC markets and supports the risk management needs of member firms and customers.
