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Futures Contract Specifications.Updated as on 4
February, 2009
( Applicable for contracts expiring in February 2009 and thereafter )
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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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Rubber
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Ticker symbol
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RBRRS4KOC
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Trading System
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NCDEX Trading System
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Basis
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RSS 4 (Ribbed Smoked Sheet 4 ) ex-warehouse Kochi
exclusive of all taxes
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Unit of trading
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1 MT
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Delivery unit
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1 MT
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Quotation/base value
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Rs per Quintal
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Tick size
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Re 1
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Delivery center
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Kochi (within a radius of 50 km from the municipal
limits)
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Additional Delivery centers
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Calicut, Kottayam, Trissur and Manjeri (within a
radius of 50 km from the municipal limits) with location wise
premium/discount as announced by the Exchange from time to time.
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Quality specification
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Quality Specifications as provided under Part
II
Section 1 of the "Green Book" as detailed below:
Nothing but coagulated rubber sheets, properly dried and smoked can be
used in making these grades: block, cuttings or other scrap or frothy
sheets, weak, heated or burnt sheets, air dried or smooth sheets not
permissible
Slight resinous matter (rust) and slight amounts of dry mould on
wrappers, bale surfaces and interior sheets, found at the time of
delivery will not be objected to.
Should "rust" or "dry mould" in an appreciable extent
appear on more than 20% of the bales sampled, it shall constitute grounds
for rejection.
Medium sized bark particles, bubbles, translucent stains, slightly sticky
and slightly over-smoked rubber are permissible to the extent as shown in
the sample.
Oxidized spots or streaks, weak, heated, under-cured, over-smoked (in
excess of the degree shown in the sample) and burnt sheets are not
permissible.
The rubber must be dry, firm and free of blemishes,
blisters, sand, dirty packing and all other foreign matter other than
those specified above as permissible.
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Quantity variation
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+/- 2%
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Trading Hours
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As per directions of the Forward Markets Commission
from time to time, currently
Mondays through Fridays : 10:00 AM to 05:00 PM
Saturdays : 10.00 AM to 2.00 PM
The Exchange may vary the above timing with due notice.
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No. of active contracts
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As per launch calendar
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Opening of contracts
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Trading in any contract month will open on the 10th of
the month. If the 10th day happens to be a non-trading day, contracts
would open on the next trading day
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Tender Date
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Tender Date : T
Tender Period:
Tender period would be of 14 Calendar days during trading hours prior to
the expiry date of the contract.
Pay-in and Pay-out: on a T+2 basis. If the tender date is T then, pay-in
and pay-out would happen on T + 2 day. If such a T + 2 day happens to be
a Saturday, a Sunday or a holiday at the Exchange, clearing banks or any
of the service providers, Pay-in and Pay-out would be effected on the
next working day.
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Due date / Expiry date
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Expiry date of the contract:
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, which is other than a Saturday.
The settlement of contract would be by a early delivery system of a
maximum of 15 Pay-ins and Pay-outs or less including the last Pay-in and
Pay-out which would be the Final Settlement of the contract
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Closing of contract
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Clearing and Settlement of contracts will commence
with the commencement of Tender Period by delivery through intention
matching arrived at by the exchange based on the information furnished by
the seller and buyer respectively as per the process put in place by the
exchange for effecting physical delivery during the period from E-14 to
E-1 prior to expiry. Upon the expiry of the contract all the outstanding
open position would result in compulsory delivery.
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Delivery specification
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During the period from E-14 to E-1, Seller & Buyer
having open position are required to give their intention/notice to
deliver to the extent of his open position. The delivery position would
be arrived at by the exchange based on the information to give/take
delivery furnished by the seller and buyer as per the process put in
place by the exchange for effecting physical delivery. If the intention
of the buyers/sellers match, then the respective positions would be
closed out by physical deliveries. If there is no delivery intention
matching between sellers and buyers, then such intentions will get
automatically extinguished at close of E-1 day. Intentions can be
withdrawn during the course of E-14 to E-1 day if they remain unmatched.
Upon expiry (i.e E) of the contracts all the outstanding open positions
should result in compulsory delivery.
The penalty structure for failure to meet delivery obligations will be as
per circular no. NCDEX/TRADING-086/2008/216 dated September 16, 2008.
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Price Band
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Daily price fluctuation limit is (+/-) 3%. If the
trade hits the prescribed daily price limit there will be a cooling off
period for 15 minutes. Trade will be allowed during this cooling off
period within the price band. Thereafter, the price band shall be raised
by another 1% and trade will be resumed. If the price hits the revised
price band again during the day, trade will only be allowed within the
revised price band. No trade/order shall be permitted during the day
beyond the revised limit of (+/-) 4%.
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Position limit
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Member: 12,000 MT or 15% of market
wide open interest, whichever is higher.
Client: 4,000 MT for all contracts
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
For near month contracts: The near month limit will be
applicable during the last 7 trading days of the expiry of a contract.
Member: Maximum of 5,000 MT or 15% of the
market-wide near month open position, whichever is higher
Client : Maximum of 1,250 MT
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Special margin
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Special margin of 4% of the value of the contract will
be levied whenever the rise or fall in price exceeds 20% of the 90 days
prior settlement price. The margin will be payable by buyer or seller
depending on whether price rises or falls respectively. The margin shall
stay in force so long as price exceeds the 20% limit and will be
withdrawn as soon as the price is within the 20% band.
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Premium/ Discount (Quality)
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None
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Final Settlement Price
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The Final Settlement Price (FSP) shall be arrived at
by taking the average of the last three days spot prices. The last spot
price for the day as polled by the Exchange during the last three days
shall be taken for arriving at the FSP. In the event of unavailability of
the spot prices during any one of the last three days excluding the
expiry day (i.e., on E - 1 or E - 2), the spot price of the previous day
(E - 3) shall be considered for the average of the last three days. In
case spot prices are not available during the 3 day period prior to the
expiry date, the last spot price of the expiry day shall be considered
for arriving at the FSP.
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Contract Launch Calendar : -
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Contract Launch Month
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Contract Expiry Month
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December 4, 2008
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January 2009
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December 4, 2008
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February 2009
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December 10, 2008
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March 2009
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January 2009
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April 2009
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February 2009
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May 2009
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March 2009
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June 2009
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April 2009
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July 2009
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May 2009
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August 2009
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June 2009
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September 2009
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July 2009
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October 2009
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August 2009
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November 2009
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September 2009
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December 2009
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October 2009
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January 2010
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November 2009
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February 2010
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December 2009
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March 2010
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January 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 Month
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Contract Expiry Month
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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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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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