IPE Introduces New Facilities To Its Options Contracts

The IPE, Europe's leading energy futures and options exchange, today announced it would introduce several contract enhancements to Brent Crude and Gas Oil options on 27 May 2002.

• Contract extensions
• Introduction of EFS facility
• Reduced strike price increments for Gas Oil options

"The IPE is constantly seeking new ways to improve the services and products available to market participants", said Jackie Bullimore, Head of Oil Markets. "The addition of an EFS facility, longer dated options and a narrower strike range will increase the ability of the market to use these products effectively in their trading and risk management programmes".

Contract extension

The IPE will add five extra months to the existing Brent Crude and Gas Oil options contracts thus increasing the tradeable months to 11. IPE Traded Options are American style, exercisable at any time up to expiry.

EFS facility

This is where any IPE look alike option trade executed over-the-counter (OTC), before the underlying IPE option is listed, can be converted into an IPE option once it is available on the Exchange.

In addition, the IPE will also accept, as an underlying option trade, all other option trade types regardless of the date of execution OTC.

All permitted OTC traded options brought onto the Exchange using this new EFS facility will result in an American style option position.

Reduced strike price increments for Gas Oil options

IPE Gas Oil options will benefit as the strike increments reduce from $5 to $2.50. Existing positions will not be affected but any new positions will benefit from greater pricing flexibility.

All major quote vendors list real-time IPE traded options data. The page codes for these companies can be found on the IPE's website at www.ipemarkets.com/w1/qv/index.php