A.    Marker Price Procedures

A.1 The DME Oman Crude Oil Futures Contract (OQD) daily marker price will be determined from trades executed on the nearby contract month (M1), during the OQD Marker Window, which shall be the time period between 1625 to 1630 (Singapore Time) on each trading day.

In determining whether the marker price is an accurate reflection of prevailing values the Exchange may take into account:

1. the volume weighted average price (VWAP) of the trade executed during the OQD Marker Window;

2. the spread transactions made during the OQD Marker Window;

3. the price and volume of bids and offers made during the OQD Marker Window;

4. the conduct of trading by market participants in the OQD Marker Window; and

5. any other factor the Exchange, in its absolute discretion, considers relevant when the total number of lots traded during the OQD Marker Window is fewer than the level determined by the Exchange, at its absolute discretion, from time to time.

A.2 The Exchange may, in its absolute discretion, exclude trades from the calculation of the marker price if it considers it to be in the best interest of the market to do so.

 

B.    Cool Down Period

B.1 The Exchange reserves the right to amend the marker price, within a “Cool Down Period”, which shall be the 60-minute interval between 1630 to 1730 (Singapore Time). However, in exceptional circumstances, DME reserves the right to extend the Cool Down Period as required.

B.2 A notification will be sent to customers in case the Exchange amends a published marker price.

 

C.    Final Day Marker Price

C.1 On the day of expiration of the nearby contract month (M1), the marker price will be determined by the marker price of the next contract month (M2), adjusted by a Price Adjustment Factor (PAF), where:

1. the marker price of M2 will be determined in accordance with the Marker Price Procedures set out in Settlement Procedures A.1 to A.2 applied to the M2;

2. the PAF will be determined by the Exchange in accordance with the PAF Calculations Procedures set out in Settlement Procedures D.1 to D.2.

 

D.    PAF Calculations Procedures

D.1 The Price Adjustment Factor (PAF) shall be the VWAP of trades executed in the spread contract involving the nearby contract month (M1) and the next contract month (M2), during the OQD Marker Window, over the three penultimate trading days of the month.

In determining whether the PAF calculation is an accurate reflection of prevailing values the Exchange shall take into account:

1. the volume weighted average price (VWAP) of the trade executed during the OQD Marker Window;

2. the price and volume of bids and offers made during the OQD Marker Window;

3. the conduct of trading in the OQD Marker Window; and

4. any other factor the Exchange, in its discretion, considers relevant when the total number of lots traded during the OQD Marker Window is fewer than the level determined by the Exchange, at its absolute discretion, from time to time.

D.2 The Exchange may, in its absolute discretion, exclude trades from the calculation of PAF if it considers it to be in the best interests of the Market to do so.

 

E.    End of Day Settlement Price

E.1 Following market close, at 02:30 EST, the Exchange will declare end of day settlement prices for all contract months. These prices will be based on the DME Oman market relevant values between 02:25 and 02:30 EST.

E.2       The Exchange will also monitor market activity in the period after calculation of settlement prices, and throughout the Trading Day, and may correct or amend settlement prices to ensure they are a fair reflection of the market.