On September 6, the Exchange will launch a Brent options contract and, on September 7, it will initiate a Brent/WTI spread options contract, based on the differential between the Exchange's Brent and light, sweet crude oil futures contracts. Each of the new contracts will be traded from 9 AM to 3:10 PM. Six contract months will be listed for the two options contracts, beginning with a November launch.
The expiration of both of the options contracts will occur two business days before the trading terminates in the underlying Brent futures contract. Buying a call on the Brent/WTI options contract will represent a long light, sweet crude oil futures position and a short Brent futures position. Buying a put will be equivalent to a short light, sweet crude oil futures position and a long Brent futures position.
Exchange President J. Robert Collins, Jr., said, "We are delighted to be able to offer this broad array of risk management instruments to Brent market participants and especially pleased that these customers will finally have the opportunity to participate in the unique liquidity provided by our energy options traders."
