| Name & Trade Code | Singapore Jet Kerosene (Platts) | |
| Contract Name: | Sing Jet Kero Sprd (Distillates), Time Spread, Asia -Commodity CFD | |
| Platform Code: | Sing Jet Kero Sprd | |
| Deal Classification: | Commodity CFD | |
| Deal Type (Outright/Product Differential/Time Spread): | Time Spread | |
| Geographical Region: | Asia | |
| Specification | ||
| Category: | ||
| Sector: | Energy | |
| Price Digits: | 2 | |
| Product Group: | Distillates | |
| Tenor Period: | Consecutive individual whole calendar months, e.g. February 25 (Feb25) | |
| Maximum Forward Tenor: | 12 consecutive forward Tenor Periods available | |
| Trading Screen Name: | Sing Jet Kero 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. 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 COB working day prior to | |
| MOC Haircut | +/- 50% of nominal OMGO spread |
The Sing Jet Kero Sprd contract is a commodity CFD (Contract for Difference) in the Distillates group that represents the time spread between two consecutive months of Singapore Jet Kerosene (Platts) 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 Singapore Jet Kerosene
- Manage exposure to seasonal price fluctuations in the Asian jet fuel market
- Execute calendar spread trading strategies
Market Significance
- Price Structure: Reflects the market’s expectation of near-term supply and demand dynamics for jet fuel in Singapore
- Seasonal Patterns: Captures typical seasonal variations in jet fuel consumption, particularly in the aviation sector
- Regional Benchmark: Serves as a key reference for jet fuel pricing in the Asia-Pacific region
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 Asian jet fuel market
- Flexibility: Enables various trading strategies, from simple calendar spreads to more complex multi-leg trades
This contract is particularly useful for airlines, refineries, trading houses, and financial institutions active in the Asian jet fuel market, offering them a precise instrument to manage time-related price risks and implement sophisticated trading strategies in the jet fuel sector.
