NOS launches clearing of TD5 freight options - 9 January

Clearing is available to all members with immediate effect.

NOS has developed this product in order to offer a wider service to our members, and to continue offering an ever widening range of products to the market.

Margining of TD5 freight options will be based on the new 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.

TD5 FREIGHT OPTIONS STRUCTURE:

• TD5 freight options will be available for trading and clearing for all NOS members.
• TD5 freight options will be structured as monthly Call and Put options for the term of rolling 18 months.
• TD5 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 TD5 freight options will be 5 days.
• The clearing fee for TD5 options will be 2% of the option premium.
• All strikes may be cleared with a minimum $25/day price fluctuation.
• 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 TD5 freight options, please see the Rulebook and Appendix 5 (Product Specifications).

• Please click here for the amended Appendix 5:

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

• See: http://prod.nos.no/freight/documents.html

Contact information:

For questions related to clearing and margining, please contact:

• Hanne Johannsson, Vice President NOS tel: +47 23 25 93 21
• Morten Larsen, Risk Manager NOS tel: +47 23 25 93 09