ICE Futures Guidance on the Exchange for Physical (“EFP”) and Exchange for Swaps (“EFS”) trading facilities This Guidance updates earlier Guidance issued and contains a summary overview of each facility followed by detailed Guidance on the permitted use of the EFP/EFS facilities and the factors to be

The Exchange of Futures for Physical (EFP) is an alternative mechanism that is used to price physical crude oil. This enables participants to exchange their futures positions for a physical position thus separating the pricing from the physical supply.

Dec 11, 2024 · This article explores how the EFP process works, focusing specifically on the ICE Gulf UCO futures contract that settles based on the spot price of Fastmarkets/The Jacobsen Gulf used cooking oil and how a company can leverage this mechanism to lock in a price and settle a physical transaction.

The limiting factors on acceptance of EFP/EFS registration are: • In the case of EFP transactions, the underlying OTC contract must be properly documented and available for production to the ICE Futures Europe compliance department on demand in order to validate its legitimacy.

Summary overview of EFP, EFS, Soft Commodity EFRP and Basis trading facilities • The EFP facility allows Members to register as EFP trades, Futures trades linked to physical and forward transactions in energy products.

The EFP is a privately-negotiated transaction between the two parties to the trade, where the consummated transaction must be reported to the Exchange. Because both sides of the trade track the same benchmark, an EFP is market-neutral.

This policy provides details and requirements regarding the use of the Exchange for Physical (“EFP”), Exchange for Swap (“EFS”), Exchange for Related Positions (“EFRP”), Soft Commodity Exchange of Option for Option (“EOO”) and Basis Trade facilities for ICE Futures Europe (“IFEU”) contracts, and the factors to be considered when bringing bilater...

Apr 17, 2024 · Exchange of futures for physical (EFP) allows for one party to swap a futures contract for the actual underlying asset. EFPs are traded over-the-counter (OTC) and are often used by...

In finance, an exchange of futures for physicals (EFP) is a transaction between two parties in which a futures contract on a commodity is exchanged for the actual physical good. This transaction involves a privately negotiated exchange of a futures position for a corresponding position in the underlying physical.

With the Exchange for Physicals for Financials ("EFP-F") Service, Participants have the possibility to execute and clear the futures leg of an off-book fixed income trade via the Eurex® system.