Can long or short positions less than the minimum stem size of 200,000 barrels (or 200 lots) going in to expiry be held by a customer for the DME Oman Crude Oil Futures Contract?
A. Petroleum Development Oman (PDO), the terminal operator, has a minimum loading volume per vessel (or “stem size”) of 200,000 Barrels. If a customer (long or short) in the futures market has a position that is less than the minimum stem size of 200,000 Barrels (or 200 lots) going into expiry for the DME Oman Crude Oil Futures Contract, then the customer must be able to demonstrate that he has access to additional oil by way of OTC supply or co-loading to make up the minimum stem size of 200,000 barrels to his Clearing Member, and by extension, to the DME. Failing to do so will enable the Clearing Member and/or DME to have the customer liquidate his position ahead of contract expiry, execute an EFP trade post-expiry or perform an ADP during the delivery process to insure performance of the contract.
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