Brent crude oil is produced in Brent area of North Sea in North Atlantic. London Intercontinental Exchange and the New York Mercantile Exchange have their futures trading, which is the benchmark of market oil price.

Characteristics of Brent crude oil contract:

Flexibility: By providing futures contracts corresponding to the spot market, the oil industry can lock prices and arrange production by using futures cashing and basis trading, so as to better control the time of buying and selling commodities.

Price transparency: Real-time prices can be obtained through major data providers. Therefore, all participants can know the price situation in real time when trading.

Small batch trading: Futures trading provides the possibility for small batch trading (multiple of 65,438+0,000 barrels), while the quantity standard in the spot market is higher.

Strong contract security: London Clearing House (LCH) is the other party of buyers and sellers trading on the London Stock Exchange. This ensures the financial soundness of each contract traded by (clearing members of the exchange), including delivery and settlement. LCH has no obligation or contractual relationship with its members' customers (that is, non-member users or settlement members of the exchange).

Contract unit: 1 000 barrels (42,000 gallons).

Signing month: continuous 12 months, extended to a maximum of 24 months after the first quarter and to a maximum of 36 months after half a year.

Quote: USD and US cents per barrel.

Lowest price fluctuation: 0.0 1 USD/barrel.

Minimum contract change: 10 USD per contract.

Daily price limit: there is no price limit.

Last trading day: If 15, the first day of the delivery month, is a banking day in London, the trading shall be stopped at the close of that day. If the day falls on a non-banking day in London (including Saturday), the trading will be stopped on the working day before that day and announced by the Exchange.

Delivery date: ICE Brent crude oil futures contract is a deliverable contract (by converting futures into cash), or you can choose to settle in cash at Brent index price on the day after the last trading day. If cash delivery is required, it must be notified to the Exchange within one hour after the transaction stops (the same as the clearing house procedure), and the settlement shall be made through LCH within two working days after the transaction stops.

Futures Converting to Spot (EFP) and Futures Converting to Swap (EFS): EFP and EFS transactions in the delivery month can be reported to the Exchange during the trading hours in the delivery month, and registered by LCH within one hour after the trading is stopped (suspended). This will give market participants who also have OTC positions more opportunities to avoid risks.

Position limit: unlimited.