Introduction of ICE Futures Middle East Sour Crude Oil Futures Contract

Introduction

Further to ICE Futures Circular 07/041 dated 19 April 2007 we provide below information about the introduction of the ICE Futures Middle East Sour Crude Oil Futures contract.

Launch Information

The ICE Futures Middle East Sour Crude Oil Futures contract will be launched on Monday, 21 May 2007.  The contract will be set up on ICE TRS/CPS on Friday, 4 May 2007 in advance of the launch. Dummy settlement prices will be input from this time until the launch date.

TRS/CPS Contract File for ICE Futures

The ICE TRS/CPS system will be upgraded to include details of the new contract on 4th May 2007. PC Gateway users are reminded that they will need to download a new Contract File (CONTRACT.DAT) for the ICE Futures exchange before downloading any trade data. Users can download this file any time from 4 May 2007 to 21 May 2007. 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 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 and Cash Settlement fees will be waived until 31 August 2007. From 1 September 2007 Registration and Cash Settlement fees charged will be US$ 0.09 per lot per side.

The Clearing House Rulebook

Amendments and additions to the Clearing House Rulebook (General Regulations, Default Rules Settlement Finality Regulations and Procedures) for this contract will be available on LCH.Clearnet 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:

Yours sincerely

David Farrar
Senior Manager
Exchange & Commodity Derivatives