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SGX is among the first to offer clearing of OTC Balance-of-Month Fuel Oil contracts. This initiative is in response to feedback from market participants who trade partial month contracts (Balance-of-Month) and are currently unable to clear such contracts to mitigate their bilateral credit risks.
Balance-of-Month Fuel Oil swaps are traded as individual day contracts in the current month. The final settlement of these contracts are derived from the arithmetic average of Platts' daily spot assessment prices from the contract date till the last business day of the contract month.
On each business day, two Balance-of-Month Contracts each for Fuel Oil 180cst and for Fuel Oil 380cst, comprising the current Business Day Contracts and the next Business Day Contracts, will be listed for clearing. The following Contracts will therefore be listed on 4 September 2006 when SGX clearing of Balance-of-Month Fuel Oil Swap commences:
- 4 September 06 Balance-of-Month Fuel Oil 180cst Contract
4 September 06 Balance-of-Month Fuel Oil 380cst Contract
5 September 06 Balance-of-Month Fuel Oil 180cst Contract
5 September 06 Balance-of-Month Fuel Oil 380cst Contract
