OTC Commodity and Emission allowances Derivatives Costs and Charges
With reference to OTC Commodity and Emission allowances Derivatives transactions, the cost applied to the client is the aggregate of the following components:
- hedging cost
- margin (so-called mark up)
both calculated on the reference capital of the transaction.
The table below illustrates the maximum levels of the hedging cost and the margin applicable to an OTC Commodity and Emission allowances Derivatives transaction.
Actual costs applied may differ from those illustrated.
| UNDERLYING/REFERENCE FAMILY | MAXIMUM HEDGING COST (%) | MAXIMUM MARGIN (%) | UPDATE DATE | |
| Expiry date ≤ 6 months | Expiry date > 6 months | |||
| OTC Commodity and Emission allowances Derivatives - SWAP | ||||
| Base Metals | 1.10% | 1.30% | 2.50% per year | 07/2023 |
| Precious Metals | 0.50% | 0.60% | ||
| Steel | 4.30% | 5.00% | ||
| ICE Brent | 0.50% | 0.90% | ||
| ICE Gas Oil Future | 0.50% | 0.90% | ||
| Platts Dated Brent Crude Oil M | 0.60% | 1.00% | ||
| Platts Gasoil | 1.30% | 1.60% | ||
| Platts ULSD | 1.30% | 1.60% | ||
| Platts JET | 1.20% | 1.50% | ||
| Platts Fuel Oil | 1.50% | 2.00% | ||
| Gas Formula | 1.50% | 2.00% | ||
| Power Formula | 2.50% | 3.00% | ||
| Coal Argus | 1.30% | 1.60% | ||
| Coffee NYMEX | 0.50% | 0.90% | ||
| Corn CBOT | 0.50% | 0.90% | ||
| Wheat CBOT | 0.50% | 0.90% | ||
| Soybean CBOT | 0.50% | 0.90% | ||
| Maize MATIF | 1.90% | 2.20% | ||
| Milling Wheat MATIF | 1.30% | 1.60% | ||
| CO2 - Emission allowances | 0.50% | 0.50% | ||
| ICE Cocoa | 0.50% | 0.90% | ||
| Coffee ICE | 0.50% | 0.90% | ||
| Power | 1.00% | 1.50% | ||
| Platts Gasoline | 3.00% | 5.00% | ||
| Gas | 1.50% | 2.00% | ||
| Propano Argus | 3.00% | 5.00% | ||
| Sugar | 0.50% | 0.90% | ||
| JKM | 1.50% | 2.00% | ||
| Henry Hub | 0.20% | 0.30% | ||
| PIX Pulp | 3.00% | 5.00% | ||
| Other underlying | 4.30% | 5.00% | ||
| OTC Commodity and Emission allowances Derivatives - Options | ||||
| Copper | 2.60% | 3.20% | 2.50% per year | 07/2023 |
| High Grade Aluminium | 2.60% | 3.20% | ||
| Zinc | 2.60% | 3.20% | ||
| Aluminium Alloy | 3.50% | 3.95% | ||
| Lead | 3.50% | 3.95% | ||
| Tin | 3.50% | 3.95% | ||
| Nickel | 3.50% | 3.95% | ||
| COMEX Gold | 2.00% | 2.50% | ||
| ICE Brent | 2.00% | 2.80% | ||
| ICE Gas Oil Future | 2.00% | 2.80% | ||
| Platts Dated Brent Crude Oil M | 3.00% | 3.65% | ||
| Platts JET | 3.60% | 4.15% | ||
| Platts Fuel Oil | 3.90% | 4.65% | ||
| Corn CBOT | 2.00% | 2.80% | ||
| Wheat CBOT | 2.00% | 2.80% | ||
| Soybean CBOT | 2.00% | 2.80% | ||
| Coal Argus | 2.00% | 2.80% | ||
| Milling Wheat MATIF | 2.00% | 2.80% | ||
| CO2 - Emission allowances | 2.00% | 2.80% | ||
| ICE Cocoa | 2.00% | 2.80% | ||
| Coffee NYMEX | 2.00% | 2.80% | ||
| Coffee ICE | 2.00% | 2.80% | ||
| Power | 3.90% | 4.65% | ||
| LBMA Gold | 2.00% | 2.80% | ||
| Gas | 2.50% | 2.80% | ||
| Sugar | 2.00% | 2.80% | ||
| Henry Hub | 2.50% | 2.80% | ||
| Other underlying | 3.90% | 4.65% | ||
The table below illustrates an example of calculation of the maximum costs applied by the Bank relating to a Commodity Option and 1 year duration. The values shown in the table are based on a reference capital equal to EUR 1.000.000. All costs are expressed on annual basis.
| UNDERLYING/ REFERENCE FAMILY | MAXIMUM HEDGING COST | MAXIMUM MARGIN | MAXIMUM COST (€) | ||||
| Cost (%) | Cost (€) | Margin (%) | Margin (€) | ||||
| OTC Commodity Derivatives - Options | |||||||
| Copper | 3.20% | 32.000 | 2.50% | 25.000 | 57.000 | ||
