Trading DME Contracts

DME Oman Crude Oil Average Price Option Contract (DRD)

 
Underlying Contract
 
DME Oman Crude Oil Calendar Futures (ODO)
 

Trading Unit
 
1 DRD contract gives the right to buy or sell 1 ODO contract
 

Price Quotation
 
U.S. dollars and cents per barrel
 

Trading Symbol on Globex
 
DRD
 

Trading Hours
 
Electronic trading is open from 1600 North American Central Standard Time / Central Daylight Time (CST/CDT) Sundays and from 1645 CST/CDT Monday to Thursday and closes at 1600 CST/CDT the next day, Monday to Friday.
 
Singapore is 14 hours ahead of CST and Dubai is 10 hours ahead. The time difference is reduced by one hour when CDT is in effect. Neither Dubai nor Singapore observe Daylight Savings Time.
 

Trading Months
 
36 months
 

Minimum Price Fluctuation
 
$0.001 per barrel ($1.00 per contract)
 

Maximum Daily Price Fluctuation
 
None
 

Strike Prices
 
Trading shall be conducted for options with strike prices in increments as set forth below:

(A) On the first Trading Day in an option contract month, trading shall be at the following strike prices:

(i) the previous day's Settlement Price for DME Oman Crude Oil Calendar Futures contracts in the corresponding delivery month rounded off to the nearest fifty-cent increment strike price unless such price is precisely midway between two fifty-cent increment strike prices, in which case it shall be rounded off to the lower fifty-cent increment strike price and; (ii) the twenty fifty-cent increment strike prices which are twenty increments higher than the strike price described in (A) (i) and;(iii) the twenty fifty-cent increment strike prices which are twenty increments lower than the strike price described in (A) (i) and;(iv) an additional ten strike prices for both call and put options will be listed at $2.50 increments above the highest fifty-cent increment as described in (A) (ii), beginning with the first available such strike that is evenly divisible by $2.50 and; (v) an additional ten strike prices for both call and put options will be listed at $2.50 increments below the lowest fifty-cent increment as described in (A) (iii) beginning with the first available such strike that is evenly divisible by $2.50.

(B) Thereafter, on any Trading Day prior to the expiration of the option: (i) new consecutive fifty-cent increment striking prices for both puts and calls will be added such that at all times there will be at least twenty fifty-cent increment strike prices above and below the at-the-money strike price available for trading in all options Contract Months; and (ii) new $2.50 increment strike prices will be added such that at all times there shall be ten $2.50 increment strike prices above and below the nearest fifty cent increment strike price, beginning with the first available strike prices that are evenly divisible by $2.50. The at-the-money strike price will be the previous Trading Day's DME Settlement Price for DME Oman Crude Oil Calendar Futures Contracts rounded in accordance with the procedures set forth in subsection (A)(i) above.

(C) Notwithstanding the provisions of subsections (A) through (B) above, if the Board determines that trading in Contracts will be facilitated thereby, the Board may by resolution change the increments between strike prices, the number of strike prices which shall be traded on the first Trading Day in any new option Contract Month, the number of new strike prices which will be introduced on each Trading Day or the period preceding the expiration of a Contract in which no new strike prices may be introduced.

 

Contract Value
 
On expiration of a call option, the contract value for each Contract will be the product of the strike price being subtracted from the Settlement Price for the underlying Contract Month of the DME Oman Crude Oil Calendar Futures Contract on the expiration date and the result thereof being multiplied by 1,000 barrels, provided that if such product is less than zero, the contract value for each Contract will be zero.
 

On expiration of a put option, the contract value for each Contract will be the product of the Settlement Price of the underlying Contract Month of the DME Oman Crude Oil Calendar Futures Contract on the expiration date being subtracted from the strike price and the result thereof being multiplied by 1,000 barrels, provided that is such product is less than zero, the contract value for each Contract will be zero.

 

Last Trading Day
 
Trading in the nearby Contract Month shall cease on the last Trading Day of the contract month.
 

Settlement Type
 
Deliverable: A put or call option contract traded on the Exchange represents an option to assume a short or long position in the underlying contract traded on the Exchange.
 

Rulebook Chapter
 
 

Governing Law
 
English Law
 

Holidays

Please visit the DME holiday calendar at http://dubaimerc.com/trading-hours-and-holiday-calendar