Euro Pacific Bank

Energy Futures Risk Policy Update: April 27, 2020

Due to the current high volatility in energy products, as well as the recent decision by certain exchanges to support negative pricing for a number of energy contracts, Euro Pacific Securities, Inc. has made the following policy changes to its expiration / near-expiration risk policies, effectively immediately.

Two Day Closeout Policy

Cash-settled contracts will be subject to the same liquidation schedules as the physical delivery contracts against which they are indexed.

By example, this will mean that both physical delivery contracts such as [email protected] (physically settled) and [email protected] (cash settled) will both be subject to mandatory closeout commencing the beginning of the regular trading session 2 days ahead of their respective expirations.

Note: The commencement of expiration risk and position reduction policies varies slightly based on the contractual details of the specific underlying commodity product , but is always referential to the earlier of:

  • Last trading date
  • Expiration date
  • First notice date

Five Day Risk Reduction Policy

Starting 5 business days ahead of expiration, only risk-reducing orders in expiring month contracts will be accepted.

Orders that open or increase positions, as well as increase the expiration month risk will not be accepted. Position closing orders and margin reducing will always be accepted.

Applicable Products

SymbolSecurity DescriptionSettlement Method
CLLight Sweet Crude Oil FuturesPhysical Delivery
WTIICE West Texas Intermediate (WTI) Light Sweet Crude Oil FuturesCash
QME-mini Crude Oil FuturesCash
BZBrent Crude Oil Last Day Financial FuturesCash
BBBrent Crude Oil FuturesCash
HONY Harbor ULSD (HO) FuturesPhysical Delivery
RBRBOB Gasoline FuturesPhysical Delivery
HOILICE Heating Oil FuturesCash
RBOBICE RBOB Gasoline FuturesCash
QUE-mini RBOB Gasoline FuturesCash
COILICE Brent Crude FuturesCash
GOILICE Gasoil FuturesPhysical Delivery
QHE-mini MY Harbor ULSD FuturesCash

This list is subject to change.