NYMEX to list tanker FFAs

Feb 11 2019

The New York Mercantile Exchange (NYMEX) is to list two dirty freight futures or Forward Freight Agreements (FFAs).

One will be an Aframax (70,000 mt US Gulf Coast-UK Continent) and the other a VLCC (270,000 mt US Gulf Coast-China).

They will become effective 17th February for a trade date of 19th February, the CME Group told S&P Global Platts.

According to a 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 tonnes, 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 on 17th September, 2018.

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