The New York Mercantile Exchange will list two dirty freight futures or Forward Freight Agreements — the Aframax 70,000 mt US Gulf Coast-UK Continent and VLCC 270,000 mt US Gulf Coast-China routes — effective February 17 for a trade date of February 19, the CME Group told S&P Global Platts.
According to a CME Group special executive report, the FFAs will trade on the CME Globex electronic platform and will be listed under the commodity codes USC for the VLCC route and USE for the Aframax run. The final settlement for the contracts will based on the average Platts spot assessments for the corresponding traded periods.
The first contract month will be March 2019, with monthly contracts listed for the current year and the next five calendar years. Termination of trading for listed contract months will be the last business day of the contract month.
Contract size is 1,000 mt, with a block trade minimum threshold of five contracts.
The Intercontinental Exchange listed Platts VLCC 270,000 mt USGC-China and Aframax 70,000 mt USGC-UKC dirty tanker assessments under the codes WDD and WDE September 17, 2018.
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