Products
Last updated
Last updated
Periodic Cash-Settled Futures (PCSF)
PCSF are financial derivative contracts in which gains and losses are settled in cash at regular intervals throughout the contract's duration, rather than only at its expiration. Unlike traditional futures contracts that may require physical delivery of an asset, PCSF contracts focus solely on the cash value differences arising from price movements of the underlying asset. This periodic settlement helps in managing risk by regularly marking positions to market, thereby reducing the potential for large, unexpected settlements at the contract's end. By offering PCSF, the Sphinx Exchange aims to provide traders and investors with a flexible and efficient tool for hedging and speculative purposes. This product allows participants to manage their exposure to price fluctuations in various underlying assets while benefiting from the liquidity and reduced counterparty risk associated with regular cash settlements.
PCSF Contract Specs
Attribute | Description | Details |
Contract Unit | Standardized amount representing the market value of the underlying asset. | 10 barrels WTI |
Price Quotation | Quoted in a relevant currency per unit, reflecting the spot market valuation. | USD |
Trading Hours | Continuous trading availability to accommodate global trading activities. | 24/7 |
Minimum Price Fluctuation | Smallest increment allowed for price changes, enabling precise market engagement. | 0.0001 per barrel |
Product Code | Unique identifier for the contract, aligned with the WTX Index. | WTX |
Listed Contracts | Contract duration and types available for trading. | PSCF |
Price Updates | Frequency of updates to the price of the financial instrument. | Every 1 second |
Funding Rate Settlement | The periodic settlement of funding rates between long and short positions. | Every 8 hours |
Settlement Method | Cash settlement focusing on differences in the cash value of the underlying asset, avoiding physical delivery. | USD/Stablecoin |
Risk Management | Positions are marked to market at regular intervals to mitigate risk and ensure balanced exposure to market movements. | Regular cash settlements |
Expiring Cash-Settled Futures (ESCF)
ECSF are financial derivative contracts that conclude with a cash settlement at the contract's expiration rather than requiring physical delivery of the underlying asset. Unlike traditional futures that may entail logistical considerations for asset delivery, ECSF focus exclusively on the cash differences resulting from price movements of the underlying asset. At the end of the contract, gains and losses are calculated based on the final market price, and the net result is settled in cash. This type of settlement simplifies risk management, as it allows market participants to close out their positions without the complexities of physical exchange. By offering ECSF, the Sphinx Exchange aims to equip traders and investors with a streamlined, effective tool for both hedging and speculative strategies. This product allows participants to manage price exposure across various asset classes, benefiting from liquidity and reduced operational burdens associated with cash settlements at expiration.
Attribute | Description | Details |
Contract Unit | Standardized amount representing the market value of the underlying asset. | 10 barrels WTI |
Price Quotation | Quoted in a relevant currency per unit, reflecting the futures market valuation. | USD |
Trading Hours | Trading available globally with defined hours for key settlement activities. | 24/7 |
Minimum Price Fluctuation | Smallest increment allowed for price changes, enabling precise market engagement. | 0.01 per barrel |
Product Code | Unique identifier for the contract, aligned with the WTX Index. | ECSF |
Listed Contracts | Monthly contracts available for the current and next 12 months, rolling as new months are added. | Expiring contracts |
Expiration | The last trading day is four (4) business days prior to the 25th calendar day of the prior month. | 19:30 UK time (BST/GMT) |
Final Settlement | The contract is cash-settled to the NYMEX WTI futures final settlement price. | Published the following business day |
Daily Settlement Price | Determined using the VWAP or TWAP of trades or bids/asks in the last 60 seconds before 19:30 UK time. | See daily settlement methodology below |
Settlement Method | Final cash settlement based on the NYMEX WTI futures final settlement price, avoiding delivery. | USD/Stablecoin |
Price Updates | Frequency of updates to the price of the financial instrument. | Real-time (tick-by-tick) |
Risk Management | Positions are marked to market at regular intervals to mitigate risk and ensure balanced exposure to market movements. | Daily margining and expiration settlements |
Time Zone | Daily Settlement Cut-Off |
UK (GMT/BST) | 19:30 |
New York (EST) | 14:30 |
Singapore (SGT) | 02:30 (next day) |
Daily Settlement for Expiring Futures
VWAP (Volume-Weighted Average Price): If trades occur in the last 60 seconds before 19:30 UK time, calculate the VWAP of trades rounded to the nearest tradable tick.
TWAP (Time-Weighted Average Price): If no trades occur, calculate the TWAP of the midpoint of the bid/ask spread from the last 60 seconds before 19:30 UK time.
Fallbacks:
If no two-sided market is available, use the last traded price for the current trading day.
If no trades occur on the current day, use the prior day’s settlement price.
Final Settlement Price
The final settlement price is determined by the NYMEX WTI futures daily settlement value published on the last trading day at 19:30 UK time.
Expiration occurs four (4) business days prior to the 25th calendar day of the month preceding the contract month.
