Introduction of ICE Futures West Texas Intermediate Light Sweet Crude Oil Option Contract

Introduction

Further to ICE Futures Circular 07/030 dated 28 March 2007 we provide below information about the introduction of the ICE WTI Options contracts.

Launch Information

The ICE WTI Options contracts will be launched on Friday, 20 April 2007.

TRS/CPS Contract File for ICE Futures

The ICE TRS/CPS system has been upgraded to include details of the new contracts. PC Gateway users are reminded that they will need to download a new Contracts File (CONTRACT.DAT) for the ICE Futures exchange before downloading any trade data for that day. If you have any questions with regard to this please contact the ICE Help Desk 020 7488 5100 (London).

Clearing Procedures

This contract will be processed by the Clearing and Processing System (CPS) in the same way as existing ICE Futures contracts.

London SPAN Parameters

The contract will be margined using London SPAN. The London SPAN Parameters are available on LCH.Clearnet Ltd website under the ‘Risk Management > Ltd’ section (www.lchclearnet.com).

PPS and Banking Procedures

Standard Clearing House PPS and banking procedures will apply to this contract. If you have any queries regarding PPS arrangements please contact Siobhan White on +44 (0)20 7426 7044.

Fees

LCH.Clearnet Registration fees charged will be US$ 0.12 per lot per side and Exercise and Assignment fee will be US$0.30 per lot per side. There will be a fee holiday for these fee classes from the date of the launch until 31 May 2007. After this date fees will be included in the usual month end Fee invoices and collected through PPS in the normal way on the payment date.

The Clearing House Rulebook

Amendments and additions to the Clearing House Rulebook (General Regulations, Default Rules Settlement Finality Regulations and Procedures) for these contracts will be available on LCH.Clearnet Ltd website (www.lchclearnet.com) in due course, under the section 'Rules & Regulations', under sub-heading 'Ltd > Recent and Forthcoming Changes'.

Further Information

If you have any questions or would like further information please contact one of the following:

David Farrar
Senior Manager,
Exchange & Commodity Derivatives