IPE Brent Futures And Options - Introducing New Trading Facilities 1Q 2005

IPE Brent Contract Extension

Asian Markers

Tradable 1 Min Afternoon Marker

Arbitrage Trades in Crude

Electronic Options


• IPE Brent Contract Extension - we have enhanced the IPE Brent futures offering by extending the forward curve out to 7 years. These new listings take effect from 7th February. This extension enables the addition of the following trading months:

o Full listing from position 1 to position 30 (i.e. 30 consecutive months), and

o Trailing half-years for June and December out to 7 years

Available to all participants, in both the electronic and open outcry, this expanded suite of contracts was developed to meet a broader range of risk management needs.


• Asian Markers -
to complement the existing markers published by the IPE, we have introduced both 5 and 1 minute markers, designed to serve the close of the trading day in Asia. These markers are calculated for the front and second month for trades between 09.25-09.30 and 09.29-09.30 local London time, and between 10.25-10.30 and 10.29-10.30 respectively. We now accept EFS and EFP trades priced against these markers. The values of these markers are transmitted over the electronic platform and are posted on IPE’s website.


• Tradable 1 Minute Afternoon Marker – the 1 minute marker currently calculated between 17.29 and 17.30 is well established as a hedging reference point for market participants. As a result the IPE will introduce the ability for this marker to be tradable --in its own right -- both electronically and in open outcry. All market participants will be eligible to trade the 1 minute marker. This facility will be launched in March following the completion of development. It will trade in the same manner as Settlement, i.e. for volume only, and will be priced at the end of the trading day with the established marker value. Further information will be available soon.


• Arbitrage Trades in Crudes - recognizing the importance of arbitrage trades, IPE and ICE will facilitate the ability to trade the arbitrage between WTI and IPE Brent and IPE Brent and Dubai on the electronic platform without any legging risk. These arbitrage trades will comprise:

OTC cleared WTI/IPE Brent
OTC Dubai/IPE Brent

Upon concluding arbitrage transactions the IPE Brent leg is automatically EFS’d onto the Exchange with the WTI and Dubai legs being registered as OTC trades. These new facilities will be available beginning 11th February for participants with access to the ICE OTC suite of products. The margin requirement netting factor between cleared WTI and IPE Brent is set to 80% by the LCH.


• Electronic Options -
the IPE will open up both Brent and Gas Oil options to electronic trading from 25th February in order to expand the facilities and access available for options. Options block trading facilities will also be amended to simplify the way in which large trades can be registered with the Exchange. We will soon provide further information with regard to changes to options trading facilities.