New York Mercantile Exchange NYMEX
It ensures that the fundamentals driving the physical market are translated into the futures contract expiry price. In other words, if a market participant is left with a long or short futures position on expiry, the ICE Brent Index ensures that the expiry price for the cash-settled contract is the value at which physical Brent is trading. In the end, as Simplot and traders all plotted against each other, 100 million pounds’ worth of contracted potatoes went undelivered. The NYMEX suffered a hard blow to its reputation—not that it was all that sparkling in those days—and it got out of...
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