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| Northwest Europe (NWE) 1% Fuel Oil Swap Futures |
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Northwest Europe (NWE) 1% sulfur fuel oil swap futures are a cleared financial instrument for cargoes of low-sulfur heavy fuel oil originating in the Amsterdam-Rotterdam-Antwerp (ARA) region bound for export markets to the United States, Mediterranean, and other destinations. The product is used in the utility and industrial fuel markets.
The price settlement of the ULSD NWE swap futures contract is based on the arithmetic average of mid-point between the high and low quotations from PlattsEuropean Marketscan for cargoes of 1% heavy fuel oil, for each business day that it is determined during the contract month.
The 1,000-metric-ton contract size represents a commonly traded market unit in Europe. Through the 1% fuel oil NWE, swap futures 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 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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