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Contract Specifications For
Heating 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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HEATING OIL
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Ticker symbol
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HEATINGOIL
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Trading System
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NCDEX Trading System
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Unit of trading
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4200 US gallons
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Delivery unit
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2100000 US gallons with +/- 2% tolerance limit
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Quotation/base value
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Rs per US Gallon
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Tick size
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Rs 0.05 (i.e. 5 paise)
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Quality specification
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Generally conforms to industry standards with maximum
Sulphur of 0.2% (total percentage by mass). Also confirming No.2 Heating
Oil industry norms.
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Basis
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Ex - Mumbai (excluding all taxes, sales tax / VAT as
the case may be, levies and other expenses)
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Delivery center
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JNPT/ Mumbai Port
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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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25th day of the delivery month
If 25th happens to be a holiday, a Saturday or a Sunday then the due date
shall be the immediately preceding trading day of the Exchange
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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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Delivery Logic
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Intention Matching
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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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Trading in any contract month will open on the 26th
day of the month.
If the 26th day happens to be a non-trading day, contracts would open on
the next trading day
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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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Client level: 4000 contracts
Member level: 12000 contracts or 20% of market open
position, whichever is higher.
The above limits will not apply to bona fide hedgers. For bona fide
hedgers, the Exchange will, on a case to case basis, decide the hedge
limits. Please refer to Circular No. NCDEX/TRADING-100/2005/219 dated
October 20,2005
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Special Margin
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In case of additional volatility, a special margin at
such other percentage, as deemed fit, will be imposed in respect of
outstanding positions, which will remain in force as long as the
volatility exists, after which the special margin may be relaxed
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Final Settlement Price
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The Final Settlement Price (FSP) of Heating Oil
contract would be the international spot price of Heating Oil as polled
by the Exchange and converted at the USD/Rupee exchange rate prevailing
on expiry date.
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Contract Launch Calendar :-
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Launch Date
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Expiry Date
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10 February 2010
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April 2010
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February 2010
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May 2010
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March 2010
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June 2010
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Contract Launch Calendar :-
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Contract Launch Date
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Contract Expiry Date
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April 2010
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July 2010
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May 2010
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August 2010
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June 2010
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September 2010
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July 2010
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October 2010
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August 2010
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November 2010
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September 2010
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December 2010
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Contract Launch Calendar of
Heating Oil :-
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Contract Launch Date
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Contract Expiry Date
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October
2010
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January
2011
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November
2010
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February
2011
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December
2010
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March
2011
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January
2011
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April
2011
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February
2011
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May
2011
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March
2011
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June
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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