Futures Contract Specifications for Light Sweet Crude
Oil.
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Type of Contract
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Futures Contract Specifications
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Name of Commodity
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Light Sweet Crude Oil
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Ticker symbol
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CRUDEOIL
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Trading System
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NCDEX Trading System
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Unit of trading
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100 barrels
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Delivery unit
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50,000 barrels
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Quotation/base value
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Rs per barrel*
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Tick size
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Re 1.00
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Quality specification
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Crude oil
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API Gravity
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Sulphur Content
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all crudes which satisfy the following
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37-42 degrees
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Less than or equal to 0.42%
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Quantity variation
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+/- 1% by volume
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Basis
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FOB Cushing, Oklahoma, United States of America
exclusive of all levies and taxes
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Delivery center
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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.
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Trading hours
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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
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Due date/Expiry date
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As per launch calendar
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Delivery specification
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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.
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Closing of contract
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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.
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Opening of contracts
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As per launch calendar
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No. of active contracts
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As per launch calendar
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Price limit
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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.
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Position limits
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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).
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Quality Allowance ( for Delivery)
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No variation allowed
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* 1 BARREL = 42 US GALLONS = 158.98 LITRES
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Final Settlement Price
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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)
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Launch Calendar for Light
Sweet Crude Oil Futures Contract :-
Contract Launch Month
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Contract Expiry Month
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20 October 2009
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19 January 2010
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20 November 2009
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19 February 2010
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19 December 2009
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19 March 2010
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20 January 2010
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19 April 2010
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20 February 2010
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19 May 2010
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20 March 2010
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21 June 2010
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Contract Launch Calendar
Contract Launch Month
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Contract Expiry Month
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20 April 2010
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19 July 2010
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20 May 2010
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19 August 2010
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22 June 2010
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20 September 2010
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20 July 2010
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19 October 2010
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20 August 2010
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18 November 2010
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21 September 2010
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17 December 2010
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Contract Launch Calendar of
Light Sweet Crude Oil :-
Contract Launch Date
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Contract Expiry Date
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20
October 2010
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19
January 2011
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19
November 2010
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18
February 2011
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18
December 2010
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21
March 2011
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20
January 2011
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18
April 2011
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19
February 2011
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19
May 2011
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22
March 2011
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20
June 2011
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19
April 2011
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19
July 2011
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20
May 2011
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19
August 2011
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21
June 2011
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19
September 2011
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20
July 2011
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19
October 2011
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20
August 2011
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17
November 2011
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20
September 2011
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19
December 2011
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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.
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