| Name & Trade Code | Propane Saudi CP | |
| Contract Name: | C3 CP Sprd (NGL), Time Spread, Middle East -Commodity CFD | |
| Platform Code: | C3 CP Sprd | |
| Deal Classification: | Commodity CFD | |
| Deal Type (Outright/Product Differential/Time Spread): | Time Spread | |
| Geographical Region: | Middle East | |
| Specification | ||
| Category: | ||
| Sector: | Energy | |
| Price Digits: | 2 | |
| Product Group: | NGL | |
| Tenor Period: | Consecutive individual whole calendar months, e.g. February 25 (Feb25) | |
| Maximum Forward Tenor: | 12 consecutive forward Tenor Periods available | |
| Trading Screen Name: | C3 CP Sprd | |
| Deal Type: | Time Spread | |
| Contract Size: | 100 | |
| Unit of Trading: | mt | |
| Currency: | USD | |
| Minimal Volume[Lots] (Lots * Contract Size = Total Deal Volume ): | 1 | |
| Maximal Volume [Lots] (Lots * Contract Size = Total Deal Volume ): | ||
| Volume Step: | 0.1 | |
| Settlement: | Last Trading Day and Expiry is the penultimate working day COB prior to start of the nearest contract month, please refer to Expiry Trading Overview below | |
| Trading Price Quote: | $/mt | |
| Underlying Settlement Price Reporting Agency (PRA): | Argus | |
| Expiry Trading Overview: | ||
| Contract Expiry Date: | The penultimate trading day of the month prior to expiring Tenor Period, i.e. 30st of January 2025 for Feb25 Tenor Period | |
| Last Trading Day (for new open positions): | ||
| Last Trading Day for closing position in that Tenor Period: | The Contract Expiry Date for the Tenor Period | |
| Tenor Period Settlement Valuation Process: | ||
| Open Volume | The net open volume for the Tenor Period | |
| Daily Settlement Value | Market-on-Close – The daily Underlying PRA assessment (Platts, Argus or Exchange) settlement assessment time, e.g. Singapore window for Singapore contracts or local PRA settlement time | |
| Daily Settlement Volume | All Open Volume will be closed and settled at Daily Settlement Value, with an MOC haircut applied | |
| Final Settlement Price | Last Trading Day and Expiry is the penultimate working day | |
| MOC Haircut | MOC spread |
The C3 CP Sprd contract is a commodity CFD (Contract for Difference) in the NGL group that represents the time spread between two consecutive months of Propane Saudi CP (Contract Price) prices.
Contract Purpose
This time spread contract allows market participants to:
- Speculate on or hedge against changes in the price relationship between two consecutive months of Propane Saudi CP
- Manage exposure to seasonal price fluctuations in the Middle Eastern propane market
- Execute calendar spread trading strategies
Market Significance
- Benchmark Indicator: The Saudi CP serves as a key reference for propane pricing in the global market, particularly influencing Asian LPG prices
- Supply Dynamics: Reflects expectations of propane supply from Saudi Arabia, the world’s largest LPG exporter
- Regional Trade Flows: Provides insights into the dynamics of propane trade in the Middle East and Asia
Trading Benefits
- Spread Risk Management: Allows traders to focus on relative price movements between months, reducing exposure to outright price volatility
- Market Access: Provides a tool for trading the time structure of the Middle Eastern propane market
- Flexibility: Enables various trading strategies, from simple calendar spreads to more complex multi-leg trades
This contract is particularly useful for refineries, petrochemical companies, trading houses, and financial institutions active in the global propane market, offering them a precise instrument to manage time-related price risks and implement sophisticated trading strategies in the NGL sector.
