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On April 16, 2010 RTS Group and Saint Petersburg Exchange started providing their clients with an opportunity to trade in a new cash-settled futures contract on summer-grade gasoil (FORTS trading system code - DS) with settlement in June, July and August.
During the first two trading days, participants made l 64 trades in total for a trading volume of 507 contracts. The total volume for two days in money terms exceeded RUB9 million (USD308.2 thousand). The open interest grew more than 3.5 times and by close of the evening trading session on April 19, 220 contracts had been traded. The open interest growth demonstrates the increase of producers, consumers and medium-term investors’ of oil products interest towards the market.
On April 19, 2010 the settlement price for the gasoil futures contract with settlement in June (DS-6.10) stood at 17,310 rubles per ton.
The most active brokers in gasoil futures trading were OLMA Investment Firm, ALOR INVEST Ltd, JSC "Piter Trust Investment Company", Solid, JSC "Investment Company "ITInvest" and their clients being oil and fuel companies. Among the brokers’ clients the most active company was Novotek-Trading.
Futures contracts on summer-grade gasoil allow fuel market participants – oil and oil products producers and customers – to hedge against negative movements in summer-grade gasoil prices.
In accordance with the current Russian tax legislation, hedging expenses are charged with the prime cost of the finished product.
Gasoil futures contracts market (DS) is a joint project of RTS Group and Saint Petersburg Exchange. DS is the first cash-settled futures contract in Russia oriented to local oil products market and quoted in Russian rubles. The contract’s settlement price equals the value of the Kortes Gasoil Index published by the information analysis center "KORTES".
Trading is organized by the Saint Petersburg Exchange, whereas trades are cleared by RTS Clearing Center and settled in RTS Settlement Chamber.
Trading takes place on the basis of a trading and clearing system of the FORTS market which helps realize the principle of united settlement with the futures and options of the derivatives market FORTS.
FORTS, the derivatives market of RTS, is the leading trading venue for futures and options in Russia. Trading on FORTS started in September 2001. At present FORTS has the widest range of instruments in Russia. These are 47 contracts (34 futures and 13 options) on shares of Russian companies, bonds, short term interest rates, currency, RTS Index, oil, silver, diesel oil, sugar and gold.
