NOS announces clearing of more dry bulk freight options

Clearing is available to all members with immediate effect.

Margining of dry bulk freight options will be based on the margining curves released on the 30th of November 2006.

For more detailed information about margining and the margin curves, please contact NOS freight desk. You will find contact details below.

Please note: Members trading futures only, will not be affected by the recent changes to the Rulebook.

Capesize Route and Supramax freight options structure:

• C4 AVG and SM6TC freight options will be available for trading and clearing for all NOS members.
• C4 AVG and SM6TC freight options will be structured as monthly Call and Put options for the term of rolling 18 months.
• C4 AVG and SM6TC freight options will be Asian style with automatic exercise by NOS. All freight options will be settled against the arithmetic average of the Spot Prices for the relevant Underlying Product over the number of Index Days in the month.
• The minimum contract size for C4 AVG and SM6TC freight options will be 5 lots (5000 tons for C4 AVG and 5 days for the SM6TC).
• The clearing fee for C4 AVG and SM6TC options will be 1.5% of the option premium.
• All strikes may be cleared with a minimum price fluctuation of 5 cents for the C4AVG and USD 50 for the SM6TC.
• All option contracts will be registered on the member`s ordinary clearing account with NOS.
• Option premiums will be settled in cash between the member and NOS on the trading day. At expiration, all in-the-money options will be automatically settled against the average spot index for delivery period.
• The settlement amount - the positive difference between the average index value and the option strike, will be booked the last business day of the month.

For more detailed information regarding C4 AVG and SM6TC freight options, please see the Rulebook and Appendix 5 (Product Specifications).

Please click here for the amended Appendix 5:

• PRODUCT SPECIFICATION Rulebook Appendix 5 - (21 Feb. 2007)

  Appendix 5 - 2007.02.21.pdf 174.83 kB

For more detailed information regarding margin curves used in the margining calculation, please visit our web site.