ICE FUTURES ABU DHABI - THE HOME OF MURBAN FUTURES LAUNCHING MARCH 29, 2021
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ICE FUTURES ABU DHABI THE HOME OF MURBAN FUTURES LAUNCHING MARCH 29, 2021
MURBAN ICE FUTURES ICE MURBAN
In November 2019, Abu Dhabi’s ADNOC’s onshore concessions, which produce ABU DHABI FUTURES
Murban quality crude grade have the capacity to
Supreme Petroleum Council produce approximately 2 million barrels of oil per day,
ICE Futures Abu Dhabi (IFAD) is established ICE Murban Futures will bring transparent pricing
in Abu Dhabi Global Market (ADGM), an to participants, giving them more options to
(SPC) announced that representing more than half the UAE total
International Financial Centre that practices manage risk and clear trades. The contract will
oil production.
Abu Dhabi National Oil and applies English common law in its entirety complement ICE’s global oil complex of over 600
Murban is a highly fungible light sweet crude oil that to its legal and regulatory regime. related oil products including locational and refined
Company’s (ADNOC’s) flagship spreads across 47 geographic markets. This means
is widely used by refineries in Asia because of its
IFAD will complement ICE Murban Futures with
onshore crude oil, Murban, intrinsic and consistent chemical qualities. It has an participants can access the products they need at
a series of tradable spread markets to other the exact point of consumption or production.
API of 39.9° and Sulphur content of 0.78%.
would move to market-driven, ICE crude oil benchmarks, alongside a series
of related derivative contracts including 1st As a light sweet crude well-positioned to serve a
forward-based pricing, using Murban has a diverse user base and is imported into
almost every country in North, Far East, South East, lines, crude swaps and differentials. global market, the introduction of ICE Murban Futures
a new futures contract as its and South Asia. offers the market an exciting new oil price marker.
Contracts traded at IFAD will, subject to
price marker. regulatory approval, be cleared at ICE Clear ICE Murban Futures will be a physically delivered
Murban crude is internationally recognized for
its consistent quality and high, stable production Europe, one of the world’s leading clearing contract with delivery at Fujairah in the United Arab
The SPC also authorized ADNOC to houses, and will clear alongside ICE Brent, ICE Emirates (UAE) on a free-on-board (FOB) basis.
volumes, as well as its large number of global buyers.
remove destination restrictions on WTI, ICE (Platts) Dubai and ICE Low Sulphur
Murban crude sales. ADNOC Logistics support Murban supply with state Gasoil allowing customers to benefit from
of the art terminal and storage facilities. associated margin offsets and delivering
This was followed by an announcement meaningful capital efficiencies.
from Intercontinental Exchange Inc.
IFAD is regulated by the FSRA of ADGM and
(ICE) that it will launch a new exchange, is a registered Foreign Board of Trade (FBOT)
ICE Futures Abu Dhabi (IFAD), to host under the CFTC meaning that traders and
the world’s first futures contract clearers based in the United States can trade
based on ADNOC’s Murban crude oil. and clear IFAD markets.
ICE Futures Abu Dhabi and trading
in Murban Futures plans to launch Capacity to produce More than
on March 29, 2021, subject to the
approximately
50%
completion of regulatory approvals.* 2 million of ADNOC’s crude IFAD INFORMATION
barrels of Murban oil production For further information on IFAD and ICE
per day membership please visit
Nine of the world’s largest energy
www.theice.com/futures-abu-dhabi or contact
traders will join ICE and ADNOC as
Membership-AbuDhabi@theice.com
founding partners in ICE Futures Abu
Dhabi (IFAD). Those partners are BP, GS
Caltex, INPEX, JXTG, PetroChina, PTT,
Shell, Total and Vitol.
60+ Exported
to nearly every
IFAD
rulebook
Contract
specifications
Refiners around
country in North,
the world use
South and East Asia
Murban crude
Jeffrey Sprecher, Chairman and CEO of Intercontinental
Exchange, and H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and
Delivery IFAD ADNOC Group CEO unveil the launch of ICE Futures Abu Dhabi
procedures Q&A in November 2019.
ICE MURBAN CRUDE OIL FUTURES MURBAN CRUDE OIL – RELATED CASH
CONTRACT SPECIFICATION SETTLED CONTRACTS*
Contract Product
Size: Trading Price Settlement Price Code
Quotation: Quotation:
1,000
Murban Singapore Marker 1st Line Future
One cent One cent ADG
($0.01) per barrel Crude
barrels per lot ($0.01) per barrel Murban Singapore Marker 1st Line Balmo Future
ADK
Outrights
Murban 1st Line Future
ADF
Murban 1st Line Balmo Future
ADJ
Last Trading Day: Final Settlement Price: Daily Settlement: Daily Marker Prices: Singapore Gasoil (Platts) vs Murban 1st Line Future
MUS
Last Business Singapore Marker volume weighted published at
16:30
Price on the Last average price of Fuel Oil 380 cst Singapore (Platts) vs Murban 1st Line Future
Day of the MUT
Trading Day. This will trades between
second month
preceding the form the Exchange 19:28 and Singapore and Refined Singapore Mogas 92 Unleaded (Platts) vs Murban 1st Line Future
MUU
delivery month Delivery Settlement
19:30 16:30 Product
Naphtha C+F Japan ( Platts) vs Murban 1st Line Future
MUV
Price which will be the
London Cracks
basis for physical London
Prevailing Time
delivery Prevailing Time (there will be no London Marker
Price on the Last Trading Day) Murban Singapore Marker 1st Line vs Brent Singapore Marker 1st Line Future
AD3
Murban Singapore Marker 1st Line vs Brent Singapore Marker 1st Line Balmo Future
AD4
Crude Murban 1st Line Future vs Brent 1st Line Future
ADI
Differentials Murban 1st Line Future vs Brent 1st Line Balmo Future
ADU
Murban Singapore Marker 1st Line vs Brent 1st Line Future
ADH
Trading Hours: Physical Delivery: Contract Series:
22 hours Delivery of Murban Crude Oil at Up to 48 consecutive Murban Singapore Marker 1st Line vs Brent 1st Line Balmo Future
AD5
per day the ADNOC Terminal, Fujairah months
Murban 1st Line vs WTI 1st Line Future
on a FOB basis onto Buyer’s ADW
(01:00-23:00 London Time)
vessel during the delivery month * Murban 1st Line vs WTI 1st Line Balmo Future
ADZ
Murban 1st Line vs Dated Brent (Platts) 1st Line Future
ADV
ICE Murban Futures will be complemented with a range of cash settled derivatives which Murban 1st Line vs Dated Brent (Platts) 1st Line Balmo Future
ADY
IFAD plan to launch for day one of trading. The full list of contracts are listed here.
* An Alternative Delivery Process can be agreed between the buyer and seller.
*Subject to regulatory approvalIFAD OIL SALES IFAD: FREQUENTLY
CONTACTS ASKED QUESTIONS
Business Contacts - IFAD Who are the shareholders in IFAD?
Contact for general business inquiries
ICE is the operator of the exchange and the
Jamal Oulhadj jamal.oulhadj@theice.com
majority shareholder. ADNOC, BP, GS Caltex,
Francois Lepart francois.lepart@theice.com
INPEX, JXTG, PetroChina, PTT, Shell, Total
Business Contacts - ICE Futures Europe (TOTSA) and Vitol support ICE to launch IFAD.
Contact for general business inquiries
Jeff Barbuto jeff.barbuto@theice.com When will IFAD launch Murban Futures?
Deborah Pratt deborah.pratt@theice.com Subject to the completion of regulatory
Julius Foo julius.foo@theice.com approvals, ICE plans to launch IFAD Murban
Wayne Hick wayne.hick@theice.com Futures on March 29, 2021.
Business Contact - ICE Clear Europe Why is Murban a good price marker?
Contact for general business inquiries Murban is a high-quality light-sweet grade
Kylie Poole kylie.poole@theice.com crude oil and has reliable and stable high
production volumes from numerous long-
Membership
term concession and production partners,
Enquiries about IFAD and ICEU membership
Ann Carroll ann.carroll@theice.com including: Total, BP, PetroChina, INPEX,
Zhenhua, GS Caltex and has a large number
Trading Platform API Integration of international buyers and users.
Customers who need to schedule exchange
Intercontinental Exchange Partners Launch ICE Futures Abu Dhabi in November 2019.
conformance testing What impact does IFAD’s entry to the
conformancesupport@theice.com market have on existing oil benchmarks?
Market Making Programs
The ambition is for the market to use Murban
as a price marker alongside other global oil ADNOC: FREQUENTLY
More details surrounding IFAD’s performance
based incentive programs
benchmarks. ASKED QUESTIONS
Vincent Martin vincent.martin@theice.com What is the operational tolerance?
Production User Set-Up The operational loading tolerance is 0.2% for How does the new pricing mechanism work? How will this impact existing customer
ICE company, user, and account set up a Futures-based physical delivery. This means The price of Murban crude is set as a forward price. contracts or how they buy crude from ADNOC?
iceuseradministration@theice.com the buyer is assured they will be receiving a Following the launch of IFAD, ADNOC’s Murban ADNOC term volumes and long-term contracts will
quantity of Murban crude oil that is almost crude price will be set based on Murban Futures still be available to customers. ADNOC will remain a
Participant Agreements exactly the same as their expired Futures contracts, which will be traded on IFAD. As such, reliable supplier of its customers’ crude oil needs
ICE Participant Agreements position. When delivering physical product ADNOC’s customers will have increased visibility of and will continue to do business as usual. Volumes
accountservices@theice.com through the Exchange, it is common for the the price of Murban they are purchasing. will also be available via the exchange.
allowable delivered volume to be as precise
Datacenter and Connectivity
as operationally possible. Will some refiners look to move their risk Will ADNOC trade the Murban Futures contract
SFTI, Colo and Hub connectivity to Production
from the monthly pricing period at purchase on IFAD?
and DR sites (Basildon, Chicago, Atlanta)
What daily volumes will be available for to the monthly pricing period of delivery? ADNOC Trading, a new entity incorporated in ADGM
ICEglobalnetwork-info@theice.com
trading? Some refiners may look to do this. There will be which is 100% owned by ADNOC, will be active in
WebICE Training ICE are working closely with customers to additional risk management tools for market IFAD markets.
ICE functionality and requests for training on ensure they are ready to attract high levels participants to accommodate this.
WebICE and other tools for trading participants. of participation. With the support of our Will ADNOC’s payment terms change?
icehelpdesk@theice.com partners in launching IFAD, we are confident No change is forecast.
we will attract good liquidity in the contracts.
Compliance/Reporting
Regulatory reporting and compliance For a longer FAQ please see: https://www.theice.com/
Anita Yu anita.yu@theice.com publicdocs/ICE_Futures_Abu_Dhabi_FAQ.pdfYou can also read
