Oil

Fuel oil

The Arabian Gulf has tremendous liquidity in fuel oil in terms of both freely traded import/export volumes and bunkers traded in Fujairah, the world’s second largest bunker market (12 million tonnes per annum). The volumes traded in the Gulf markets are forecast to continue growing substantially over the next decade.
Introduced for trading on October 30, 2006.

Contract Specifications

Trading
Contract Size	100 Metric Tons
Quality Specification	High Sulphur Fuel Oil 380CST (4.5% Sulphur)
Trading Months	6 consecutive months
Last Trading Day	Last Business Day of the month preceding the Delivery Month
New Contract Listing	On the Business Day succeeding Last Trading Day
Price Quote	US$ per Metric Ton, Ex-Wharf Fujairah
Minimum Tick Size	US$ 0.01 per Metric Ton
Daily Price Limit	$25 per Metric Ton
Maximum Open Position Limit	As determined and specified by the Exchange
Maximum Open Position Limit for Near Month Contract	20,000 Metric Tons applicable during the last four trading days of the Contract Month.
Trading Days	Monday through Friday
Trading Hours	0830 – 1900 hrs (except on the last trading day of every month)
Trading Hours on Last Trading Day of every month	0830 - 1700 hrs (applicable to all contract months)

Margins
Initial Margin	As determined by the Exchange from time to time using SPAN Margin System. At the outset, Minimum Initial Margin shall be US$1500
Near Month Contract Margin	As determined by the Exchange and applicable during the last 10 trading days across all open positions. Minimum Near Month Contract Margin shall be US$ 7500
Spread Position Margin	Spread Position Margin using SPAN Margin System shall be US$ 240
Delivery Margin	US$ 7500 per contract on all delivery positions.
Extra Margin	In case of additional volatility, an Extra Margin as deemed fit by the Exchange shall be imposed on all open positions.

Delivery related information
Delivery Unit	100 Metric Tons
Delivery Tolerance	+/-5 percent of the contract delivery unit
Deliverable Quality	High Sulphur Fuel Oil 380CST (4.5% Sulphur) (refer to Annexure A)
Delivery location	Exchange-approved facilities in Fujairah
CMIs (Quality Inspectors)	As approved by the Exchange
Approved Storage facilities	VOPAK HORIZON, FRCL, DMCC-leased tanks
Provisional Settlement Value	The amount invoiced to the Buyer prior to the determination of the actual weight delivered, and based on an assumed weight of 100 Metric Tons
Settlement Value	The amount paid to the Seller based upon the actual delivered weight. The difference between the Provisional Settlement Value and Settlement Value is reimbursed or collected to or from the Buyer as the case may be on the Business Day following the Delivery Day
Loading Day	The day on which Buyer initiates loading of product into his nominated vessel or tank
Delivery Day	The day on which transfer of title to the product from the Seller to the Buyer completes
Delivery Period	Seller: Shall have the product ready for delivery (that is, in deliverable position) not later than 12th Business Day of the Delivery Month Buyer: Acceptance of delivery must be subsequent to the Seller having the product ready for delivery. Buyer shall nominate a Delivery Period of three calendar days that commences no earlier than the 5th Business Day of the Delivery Month and finishes no later than the earlier of (i) 14 calendar days after product placement by the Seller, and (ii) the 3rd last Business Day of the Delivery Month.
Notice Day	Last Trading Day
Delivery Allocation Day	Last Trading Day
Title Transfer	By In-Tank Transfer (ITT) in DMCC-leased tanks, and Inter-Tank Transfer or Ex-Wharf in case of other Exchange-approved tanks
Minimum number of contracts for Ex-Wharf delivery	30 contracts (3000 Metric Tons)