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| European Dated Brent Swap Futures |
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Brent blend is a light, sweet North Sea crude oil that serves as a benchmark grade and widely trades as a differential to the New York Mercantile Exchange, Inc., bellwether light, sweet crude oil futures contract. Dated Brent swap futures are a cleared financial instrument for hedging price risk in this important crude oil market.
Dated Brent denotes the physical spot market for Brent crude as well as Forties and Oseberg crudes which are deliverable at par to Brent. Combined production of the three crudes is approximately 1.5 million barrels per day.
Brent is primarily refined in Northwest Europe, but significant volumes move to the U.S. Gulf and East Coasts and to the Mediterranean.
The price settlement is based on the arithmetic average of the mid-point between the high and low quotations from Platts Marketscan for dated Brent for each business day that it is determined during the contract month.
The 1,000-barrel contract size for the dated Brent swap futures contract represents a commonly traded market unit, and is the same as the Exchange's light, sweet crude oil futures contract. The dated Brent swap futures contract can either be traded competitively or submitted solely for clearing to the Exchange clearinghouse through the internet-based NYMEX ClearPortsm electronic trading platform.
All position will be 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. |
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