Imarex launches BDI Options contract
International Maritime Exchange, a part of the Imarex Group of companies, is pleased to announce the launch of a new BDI Options contract to complement the BDI Futures contract launched last month.
BDI Options are cleared at NOS Clearing along with Imarex Freight Options on most tanker routes and dry bulk indices. BDI OPTIONS STRUCTURE:
1. BDI options will be available for trading and clearing for all NOS members and clients of General Clearing Members GCMs set up with NOS Clearing.
2. BDI options will be structured as monthly Call and Put options for the term of rolling 48 months.
3. BDI options will be Asian style with automatic exercise by NOS. All freight options will be settled against the arithmetic average of the Baltic Dry Index over the number of Index Days in the month.
4. The minimum contract size for BDI options will be 1 lot per month.
5. The clearing fee for BDI options will be $15 per lot incl. execution/clearing.
6. All strikes may be cleared with a minimum 100 point price fluctuation.
7. All option contracts will be registered on the member's and GCM's ordinary clearing account with NOS.
8. Option premiums will be settled in cash between the member and NOS on the trading day. At expiration, all in-the-money options will be automatically settled against the average spot index or delivery period.
9. The settlement amount - the positive difference between the average index value and the option strike, will be booked the last business day of the month.