Futures Contract Specifications for Light Sweet Crude Oil.

Type of Contract

Futures Contract Specifications

Name of Commodity

Light Sweet Crude Oil

Ticker symbol

CRUDEOIL

Trading System

NCDEX Trading System

Unit of trading

100 barrels

Delivery unit

50,000 barrels

Quotation/base value

Rs per barrel*

Tick size

Re 1.00

Quality specification

Crude oil

API Gravity

Sulphur Content

all crudes which satisfy the following

37-42 degrees

Less than or equal to 0.42%

Quantity variation

+/- 1% by volume

Basis

FOB Cushing, Oklahoma, United States of America exclusive of all levies and taxes

Delivery center

JNPT/ Mumbai Port.

The buyer shall be responsible for the freight cost, insurance, import duty and all other taxes and levies on actual basis. Freight and Insurance will be paid on actual basis on production of satisfactory documentary evidence from the seller.

Trading hours

Mondays through Fridays - 10:00 AM to 11:30 PM
10:00 AM to 11:55 PM (during US day light saving period)
Saturdays - 10:00AM to 02:00 PM
Expiry Date - at 11:30 PM / 11:55 PM *

All timings are as per Indian Standard Timings (IST)
*during US day light saving period

Due date/Expiry date

As per launch calendar

Delivery specification

The buyer and seller shall give intentions of taking/giving delivery through the delivery request window at least three trading days prior to the expiry of the contracts and such intentions can be given during 3 days which would be notified separately. This will be matched by exchange for physical delivery as per the process put in place by the Exchange.

Closing of contract

All open positions for which delivery intentions have not been received or for which delivery intentions have been rendered but remain unmatched for want of counterparty to settle delivery, will be cash settled at Final settlement Price on the expiry of the contract.

Opening of contracts

As per launch calendar

No. of active contracts

As per launch calendar

Price limit

Base daily price fluctuation limit is (+/-) 4%. If the trade hits the prescribed daily price limit, the price limits will be relaxed up to (+/-) 6% without any break/ cooling off period in the trade. In case the daily price limit of (+/-) 6% is breached, then after a cooling off period of 15 minutes, the daily price limit will be further relaxed up to (+/-) 9%. Trade will be allowed during the cooling off period within the price band of (+/-) 6%.
In case of price movement in International markets which is more than the maximum daily price limit (currently 9%), the same may be further relaxed in steps of 3% with the approval of FMC.

Position limits

12,00,000 barrels for Member
4,00,000 barrels for Client

(For hedge limits refer circular no. NCDEX/TRADING-100/2005/219 dated October 20, 2005).

Quality Allowance ( for Delivery)

No variation allowed

* 1 BARREL = 42 US GALLONS = 158.98 LITRES

Final Settlement Price

The Final Settlement Price (FSP) in Indian Rupees (INR) will be determined by the Exchange on maturity of the contract. The FSP will be the daily settlement price published as on that day (i.e. expiry day of the contract on NCDEX) by ICE Futures, London for a similar corresponding contract on ICE called the ICE WTI contracts. The exchange rate to be used as the conversion factor shall be the RBI reference spot exchange rate on that day i.e. Expiry day of contract (as obtained from Reserve Bank of India website (ww.rbi.org.in)

 

Launch Calendar for Light Sweet Crude Oil Futures Contract :-

Contract Launch Month

Contract Expiry Month

20 October 2009

19 January 2010

20 November 2009

19 February 2010

19 December 2009

19 March 2010

20 January 2010

19 April 2010

20 February 2010

19 May 2010

20 March 2010

21 June 2010

 

Contract Launch Calendar

Contract Launch Month

Contract Expiry Month

20 April 2010

19 July 2010

20 May 2010

19 August 2010

22 June 2010

20 September 2010

20 July 2010

19 October 2010

20 August 2010

18 November 2010

21 September 2010

17 December 2010



Contract Launch Calendar of Light Sweet Crude Oil :-

Contract Launch Date

Contract Expiry Date

 20 October 2010

 19 January 2011

 19 November 2010

 18 February 2011

 18 December 2010

 21 March 2011

 20 January 2011

 18 April 2011

 19 February 2011

 19 May 2011

22 March 2011

20 June 2011

19 April 2011

19 July 2011

20 May 2011

19 August 2011

21 June 2011

19 September 2011

20 July 2011

19 October 2011

20 August 2011

17 November 2011

20 September 2011

19 December 2011




Members and market participants who enter into buy and sell transactions may please note that they need to be aware of all the factors that go into the mechanism of trading and clearing, as well as all provisions of the Exchange's Bye Laws, Rules, Regulations, Product Notes, circulars, directives, notifications of the Exchange as well as of the Regulators, Governments and other authorities.

Members and market participants trading on the Exchange in the commodity contracts shall be deemed to be aware of applicable laws and amendments thereof from time to time, including provisions and rates relating to the sales tax, value added tax APMC Tax, Mandi Tax, octroi, excise duty, stamp duty, etc., applicable on the underlying commodity of any contract offered for trading.

The Exchange shall not be responsible or liable on account of non compliance by any of the members and market participants of any such applicable laws or any amendments thereof including not being aware of rates of taxes, levies, etc., on the underlying commodity of any contract offered for trading.