OTC Commodity Derivatives Costs and Charges

With reference to OTC Commodity 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 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 Derivatives - SWAP
Base Metals   1.10%  1.30%  2.50% per year 01/11/2021
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  1.00%  1.50% 
Power Formula  1.50%  2.00% 
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  0.50%  0.50% 
ICE Cocoa  0.50%  0.90% 
Coffee ICE  0.50%  0.90% 
Power  0.50%  0.70% 
Platts Gasoline  3.00%  5.00% 
Gas  0.30%  0.50% 
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 Derivatives - Options
Copper 2.60%  3.20%  2.50% per year 01/11/2021
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  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