PMEX RBD PALM OLEIN Futures Contract Specifications |
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Monday to Friday (excluding Exchange specified holidays) |
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Pre-Open Session:
Open Call Session:
Normal Trading Session:
Pre-Close Session: |
09:00 am to 09:13 am
09:13 am to 09:15 am
09:15 am to 05:45 pm
05:45 pm to 06:00 pm |
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There will be no Pre-Close session on the last trading day of
a contract and Normal trading session will end at 12:00 pm. |
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Unit of trading in RBD PALM OLEIN contracts for Future
Delivery will be 25 Metric Tonne (MT) |
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Price quoted shall be in Rs. per Maund, inclusive of all taxes,
levies and charges. (Where 1 Maund =37.324 Kg) |
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PMEX Electronic Trading System (ETS) |
Deliverable Grade &
Quality Class
RBD Palmolein
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1. |
Moisture & Insoluble impurities % by weight,
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0.15 (Max)
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2. |
Color in a 5 ¼ inch cell on lovibond Scale
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R 5 (MAX)
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3. |
Iodine Value (Wijs).
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56 to 64
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4. |
Free Fatty Acid ( as palmitic acid) % by weight
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0.25 (MAX)
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5. |
Slip melting point |
24 oC (MAX) |
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Under the RBD Palm Olein Contract, the seller also has the
option to deliver RBD Palm Oil meeting the following
specifications. There will be no premium or discount in case
of RBD Palm Oil delivery but will be subject to the Exchange
delivery procedures including acceptance by the Buyer. |
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1. |
Moisture & Insoluble impurities % by weight, |
0.10 (Max)
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2. |
Color in a 5 ¼ inch cell on lovibond Scale |
R 3 (MAX)
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3. |
Iodine Value (Wijs). |
50 to 55
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4. |
Free Fatty Acid ( as palmitic acid) % by weight |
0.25 (MAX)
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5. |
Slip melting point |
37-39 oC |
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Trading in RBD PALM OLEIN contracts for future delivery will
be in the current month and at least two subsequent months.
At any date minimum of 3 concurrent months contracts will be
active. |
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Karachi Port and Port Qasim, at Exchange approved and
designated Terminal/ Port Storage Tank. |
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Trading in any contract month will open, at the latest, on 1st
day of the month, 3 months prior to the contract month i.e.
June 2008 contract opens on 1st April 2008 at the latest. If 1st is
an Exchange holiday, trading will commence on the next
working day. |
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Contracts will expire on the 15th of the respective month. If 15th
is an Exchange holiday the next business day will be the last
trading day. |
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Palm Olein futures contract is deliverable; However, Sellers
with open short positions who intend to deliver will be required
to inform the Exchange two trading days prior to the last
trading day (E-2, where E refers to the expiration day) of their
intention to deliver along with the quantity being tendered for
delivery and Port Storage Tank /Shore tank details including
location. The notification must be accompanied by a statement
from the Port Storage Tank giving evidence of ownership by
the Seller of the quantity being tendered for delivery. Sellers
will also have to inform the Exchange if they intend to deliver
RBD Palm Oil instead of RBD Palm Olein.
The corresponding RBD Palm Olein Buyers with open long
positions matched randomly by the Exchange on the date
of the expiration [E] of the contract will be bound to settle
by taking physical delivery in three working days [excluding
Saturdays, Sundays and Public Holidays] from the date of
expiration of the contract [E].
However, if the Seller has expressed intention to deliver RBD
Palm Oil instead of RBD Palm Olein, the matched Buyer will
have the right to refuse delivery and opt for cash settlement
without any penalty, discount or premium.
In the absence of any notification received by the Exchange
from Sellers with open short positions, all open positions at
the expiration of the contract will be cash settled at the final
settlement price as determined by the Exchange.
Once final delivery commitments have been confirmed by the
Exchange, any failure to deliver by the Seller or to
take delivery by the matched Buyers will result in a penalty
prescribed by the Exchange |
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Upon expiration of the RBD PALM OLEIN contract for future
delivery, intending Sellers will have 3 business days
(excluding Saturday, Sunday and Public Holidays) to submit
Delivery Order in the name of the matched Buyers to the
Exchange.
Buyers must submit pay orders/bank drafts, in the name of the
matched Seller, to the Exchange by 12.00 pm on the 3rd
Business day after the Expiry [E+3] of the Contract.
Buyers will lift the delivery from the terminal/ shore tank
through their own arrangement of road tankers. The seller/
terminal will not be responsible for quality and quantity once
the road tanker leaves the terminal premises. However, Buyers
have the right to check the quality before shifting RBD Palm
Olein into the road tanker, as long as it is done before the end
of E+5. |
Cost of Weighing
Storage & Delivery
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All charges associated with weighing, storage, delivery and
Exchange required documentation till the day of delivery be
borne by the Seller.
The Buyer shall pay all charges applicable after delivery date
(including Port Storage Tank charges), from the first business
day following the delivery date. |
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The Daily settlement price shall be the consensus price
determined during the pre-close session. Exchange can also
determine the daily settlement price in the manner described
here under or in such other manner as may be prescribed by
the Exchange: |
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Value Weighted Average Price |
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Last Traded Price |
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Theoretical Futures Price |
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Final Settlement Price will be determined by the exchange at
the maturity of the contract. The Final Settlement Price will be
based on the average of last three days ex Karachi spot prices
obtained daily from market sources. |
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Maximum price fluctuation is +/- 10% of the last trading day’s
settlement price. |
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Greater of 10% of Open Interest and 2000 Contracts per
Broker, gross across all clients and across all maturities.
Greater of 5% of Open Interest and 250 Contracts per Client,
gross across all maturities. |
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The amount of margin payable by members in respect of their
outstanding contracts in RBD PALM OLEIN shall be
determined using VaR methodology by the Exchange. The
Exchange will adjust margin requirements as and when
volatility in the underlying changes.
However, the margin
requirements in any case shall not be less than that
determined using VaR methodology.
Margins shall be calculated on a gross basis on all open
positions held across different maturities in the same
underlying up to the Client Level without any netting |
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The minimum Initial Margin will be calculated using Value-at-
Risk (VaR) methodology intended to cover the largest loss over
a 1-day Look Ahead period that can be encountered on
99% of the days (99% Value at Risk) or as determined by the
Exchange. |
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Delivery Margin will be imposed in increments of 2% per day
on all open positions starting at five days prior to expiration (E
- 5), such that delivery margin payable on last trading will be
10%. Delivery margin shall be in addition to the initial margin. |
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Exchange reserves the right to impose special margins for
short duration of time during periods of increased or excessive
volatility. Special margins will be computed by increasing the
look-ahead period, reducing sample size or by changing any
other parameters used in the VaR methodology. |
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Positions in two offsetting PMEX Palm Olien Futures contract
with different expirations will be eligible for a spread discount. |
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PMEX will list spread contract on the 1st of every month
through final expiration of the near month contract |
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