ICE reported record third-quarter Brent options trading on 13 October, putting activity across the benchmark’s option market at 28 million contracts and average daily volume above 437,200. The company attributes demand to customers managing energy-price exposure across different parts of the Brent curve.[1]
The release also put open interest at four million contracts, up 18% year on year. It separately described volume growth of 63% on a year-to-date basis; that percentage should not be read as a third-quarter year-on-year comparison. Trading volume measures activity over a period, while open interest measures positions still outstanding.[1]
The published activity figures cover contracts with different expiry outcomes. ICE’s existing specifications show the choices.
Selected Brent option structures
| Contract | Exercise and settlement route | Timing |
|---|---|---|
| Monthly American-style | Exercise creates the corresponding Brent futures position. | Buyer can exercise before expiry; trading normally ends three business days before the underlying future, subject to holiday rules.Source 2 |
| Weekly American-style | Exercise creates the corresponding Brent future. | Rolling expiries on business days across four consecutive weeks; early exercise is permitted.Source 3 |
| Daily European-style | The future resulting from exercise immediately cash-settles. | Listed for one day; exercise occurs at expiry under the contract’s automatic-exercise rules.Source 4 |
The monthly and weekly American-style contracts use futures-style margining: the option’s value is marked to market daily rather than its full premium being exchanged at the initial trade. A broker’s customer funding arrangements therefore need to reflect the actual contract and clearing process. An equity-options cash-flow assumption is an unreliable substitute.[2][3]
An exercised American-style option can leave a futures position to manage afterwards. The daily European-style contract settles into cash. For a hedger, that distinction belongs alongside maturity and strike when selecting an instrument tied to the Brent benchmark.[2][4]
Sources & further reading
- ICE Brent Options Reach Record Traded Volume in Q3 2026 as Customers Manage Risk Across the Brent Curve Intercontinental Exchange · 13 Oct 2026 · Accessed 21 Oct 2026
- Brent Crude American-style Options: contract specifications ICE Futures Europe · Accessed 21 Oct 2026
- Option on Brent Crude Futures Weekly: contract specifications ICE Futures Europe · Accessed 21 Oct 2026
- Option on Daily EU-Style Brent Future: contract specifications ICE Futures Europe · Accessed 21 Oct 2026