| Name & Trade Code | Dated Brent | |
| Contract Name: | Dated Brent Sprd (Crude), Time Spread, Europe -Commodity CFD | |
| Platform Code: | Dated Brent Sprd | |
| Deal Classification: | Commodity CFD | |
| Deal Type (Outright/Product Differential/Time Spread): | Time Spread | |
| Geographical Region: | Europe | |
| Specification | ||
| Category: | ||
| Sector: | Energy | |
| Price Digits: | 2 | |
| Product Group: | Crude | |
| Tenor Period: | Consecutive individual whole calendar months, e.g. February 25 (Feb25) | |
| Maximum Forward Tenor: | 12 consecutive forward Tenor Periods available | |
| Trading Screen Name: | Dated Brent Sprd | |
| Deal Type: | Time Spread | |
| Contract Size: | 100 | |
| Unit of Trading: | bbl | |
| 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 COB working day prior to start of the nearest contract month, please refer to Expiry Trading Overview below | |
| Trading Price Quote: | $/bbl | |
| Underlying Settlement Price Reporting Agency (PRA): | Platts | |
| Expiry Trading Overview: | ||
| Contract Expiry Date: | The last working day of the month prior to the nearest expiring 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. 4:30 pm for European contracts | |
| 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 COB working day prior to | |
| MOC Haircut | +/- 50% of nominal OMGO spread |
The Dated Brent Sprd contract is a commodity CFD (Contract for Difference) in the Crude group that represents the time spread between two consecutive months of Dated Brent 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 Dated Brent
- Manage exposure to seasonal price fluctuations in the physical crude oil market
- Execute calendar spread trading strategies
Market Significance
- Price Structure: Reflects the market’s expectation of near-term supply and demand dynamics for physical North Sea crude oil
- Benchmark Indicator: Serves as a key reference for global crude oil pricing, influencing related products and derivatives
- Physical Market Link: Provides a direct connection to the physical crude oil market, as Dated Brent represents cargoes with specific loading dates
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 physical crude oil market
- Flexibility: Enables various trading strategies, from simple calendar spreads to more complex multi-leg trades
This contract is particularly useful for refineries, trading houses, and financial institutions active in the global crude oil market, offering them a precise instrument to manage time-related price risks and implement sophisticated trading strategies in the physical crude oil sector.
