|
|
 |
 |
 |
| East-West Fuel Oil Spread Swap Futures (Platts) |
|
The East-West spread swap futures contract is a cleared financial instrument for trading and hedging the price differential of heavy fuel oil in Singapore and Rotterdam.
The price settlement is based on the arithmetic average of the high and low quotations from the Platts Asia-Pacific Marketscan for Singapore 180cst residual fuel price minus the arithmetic average of the high and low quotations from the Platts European Marketscan for 3.5% fuel oil under the heading "Barges FOB Rotterdam" for each business day that both are determined during the contract month.
The 1,000-metric-ton contract size represents a commonly traded market unit. Through this contract, the Exchange offers the marketplace an instrument that can either be traded competitively or submitted solely for clearing to the Exchange clearinghouse through the internet-based NYMEX ClearPort® electronic trading platform.
All positions are aggregated and margined according to the value at risk as calculated by the SPAN® system. Cross margining of offsetting positions across markets can result in reduced margin obligations |
|
 |
|