Worldscale Association (London) Limited and Worldscale Association (NY) Inc. (collectively “Worldscale”) have published flat rates for tanker routes for 2013. This advisory describes the impact on tanker freight contracts transacted on the New York Mercantile Exchange, Inc. Please note that flat rates normally change annually.
Tanker Futures and Average Price Option Contracts
Tanker futures and average price option contracts are priced in US$ per metric ton. No adjustment will be made to prices in these contracts to reflect the change in flat rate.
At expiry of 2013 contract months, the new flat rate will be used to establish cash settlement amounts, i.e. the Floating Price in respect of futures, and the Underlying Reference Price in respect of average price options, in accordance with the contract rules, subject to any subsequent changes to 2013 Worldscale flat rates.
Tanker futures contracts affected are: TL, TI, TK, TM, TJ, TH, TC6 and FRS.
Tanker average price options contracts affected are: TDT, TCW and TCF.
Should you have any questions please contact the customer CME Group P&S marketing hotline at 212-299-2301, or Richard Stevens at +44 20 3379 3790.