Intercontinental Exchange (ICE), an operator of global exchanges and clearing houses and provider of data and listings services, has launched new Marine Fuel 0.5% futures contracts prior to the upcoming implementation of the IMO 0.5% sulphur cap in 2020.
ICE’s new futures contracts will settle against the S&P Global Platts physical Marine Fuel 0.5% assessments.
According to Jeff Barbuto, ICE’s global head of oil sales and business development, the contracts are launched in response to demand from our customers for Marine Fuel 0.5% specific derivative contracts and the contracts will allow participants around the world to manage changing shipping and refining economics, hedge forward, and restructure positions.
“The contracts will operate alongside ICE’s benchmark Low Sulphur Gasoil, fuel oil and LNG markets, providing customers with a range of hedging tools to assist with the transition to the new regulations in 2020,” Barbuto said.
