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Crude Palm Oil Futures Contract Specifications - 1638451890

The document outlines the contract specifications for Crude Palm Oil (CPO) futures contracts, including details such as trading unit, delivery specifications, quality standards, and trading hours. It also specifies position limits, margin requirements, and the final settlement price calculation method. Additionally, it emphasizes the responsibility of market participants to comply with relevant regulations and standards.

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yashdangi154
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27 views3 pages

Crude Palm Oil Futures Contract Specifications - 1638451890

The document outlines the contract specifications for Crude Palm Oil (CPO) futures contracts, including details such as trading unit, delivery specifications, quality standards, and trading hours. It also specifies position limits, margin requirements, and the final settlement price calculation method. Additionally, it emphasizes the responsibility of market participants to comply with relevant regulations and standards.

Uploaded by

yashdangi154
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Contract Specification for Crude Palm Oil (Symbol: CPO) futures contract

(Applicable for contracts expiring in the month of December 2021 & thereafter)

Name of commodity Crude Palm Oil

Ticker symbol CPO

Basis Ex-tank Kandla exclusive of GST

Unit of trading 10 MT

Delivery unit 10 MT

Maximum Order Size 500 MT

Quotation/base value Rs. per 10 Kg

Tick size 10 Paise

Moisture & impurities 0.25 % Max

Refractive Index, 50°C 1.4491-1.4552

Specific Gravity, 42°C 0.895-0.897

Saponification Value 195-205

Iodine Value 45-56


Quality specification Unsaponification Value 1.2 % Max

Melting Point, Capillary Slip 37°C Max


Method

FFA 5 % Max

Acid Value 10% Max

Quantity variation +/- 2%

Delivery centre Kandla (within a radius of 50 km from the municipal limits)

As notified by the Exchange from time to time, currently, Mondays


through Fridays: 09.00 A.M. to 09.00 P.M.
Trading hours On the expiry date, contracts expiring on that day will not be available
for trading after 5 P.M.
The Exchange may vary above timing with due notice.

Last trading day of the month


If last day happens to be a trading holiday, a Saturday or a Sunday
Due date/Expiry date then the due date shall be the immediately preceding trading day of
the Exchange
Upon expiry of the contract, the delivery position would be arrived at
by the Exchange based on the information to give/take delivery
Delivery specification furnished by the sellers and buyers as per the process put in place
by the Exchange for effecting physical delivery.

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On the expiry of the contract, all outstanding positions not resulting in
Closing of contract giving/taking of physical delivery of the commodity shall be closed out
at the Final Settlement Price announced by the Exchange.
Trading in any contract month will open on the 1st day of the month.
Opening of contracts If the 1st day happens to be a non-trading day, contracts would open
on the next trading day.
No. of active contracts As per launch Calendar
Daily price limit is (+/-) 4%. Once the 4% limit is reached, then after a
period of 15 minutes this limit shall be increased further by 2%. The
trading shall be permitted during the 15 minutes period within the 4%
Price limit limit. After the DPL is enhanced, trades shall be permitted throughout
the day within the enhanced total DPL of 6%.
The DPL on the launch (first) day of new contract shall be as per the
circular no. NCDEX/TRADING-010/2021 dated March 22, 2021.

Member-wise: 9,00,000 MT or 15% of the market wide open interest


in the commodity, whichever is higher.
Client-wise: 90,000 MT.
Bona fide hedger/EFE clients may seek exemption as per approved
Hedge Policy of the Exchange notified vide Circular No.
NCDEX/TRADING-026/2021 dated August 30, 2021 and Circular No:
Position limits NCDEX/TRADING-072/2018 dated November 28, 2018.
For near month contracts:
The following limits would be applicable from 1st of every month in
which the contract is due to expire. If 1st happens to be a non-trading
day, the near month limits would start from the next trading day.
Member-wise: 2,25,000 MT or one-fourth of the member’s overall
position limit in that commodity, whichever is higher.
Client-wise: 22,500 MT.
Delivery option Intention Matching

Special margin In case of unidirectional price movement/ increased volatility, an


additional/ special margin at such other percentage, as deemed fit by
the Regulator/Exchange, may be imposed on the buy and the sell
side or on either of the buy or sell sides in respect of all outstanding
positions. Reduction/ removal of such additional/ special margins
shall be at the discretion of the Regulator/Exchange.
Final Settlement Price FSP shall be arrived at by taking the simple average of the last polled
spot prices of the last three trading days viz., E0 (expiry day), E-1 and
E-2. In the event the spot price for any one or both of E- 1 and E-2 is
not available; the simple average of the last polled spot price of E0,
E1, E-2 and E-3, whichever available, shall be taken as FSP. Thus,
the FSP under various scenarios of non-availability of polled spot
prices shall be as under:
Polled spot price FSP shall be simple
Scenario availability on average of last polled spot
E0 E‐1 E‐2 E‐3 prices on:
1 Yes Yes Yes Yes/No E0, E‐1, E‐2
2 Yes Yes No Yes E0, E‐1, E‐3
3 Yes No Yes Yes E0, E‐2, E‐3

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4 Yes No No Yes E0, E‐3
5 Yes Yes No No E0, E‐1
6 Yes No Yes No E0, E‐2
7 Yes No No No E0

Minimum Initial Margin 10%

Contract Launch Calendar

Contract Launch Month Contract Expiry Month


August 2021 December 2021
September 2021 January 2022
October 2021 February 2022
November 2021 March 2022
December 2021 April 2022
January 2022 May 2022
February 2022 June 2022
March 2022 July 2022
April 2022 August 2022
May 2022 September 2022
June 2022 October 2022
July 2022 November 2022
August 2022 December 2022

Disclaimer

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.

It is clarified that it is the sole obligation and responsibility of the Members and market participants to
ensure that apart from the approved quality standards stipulated by the Exchange, the commodity
deposited / traded / delivered through the approved tanks either on their own or on behalf of them by
any third party acting on behalf of the Market Participants/Constituents is in due compliance with the
applicable regulations laid down by authorities like Food Safety and Standards Authority of India,
AGMARK, Warehousing Development and Regulatory Authority (WDRA) etc. as also other
State/Central laws and authorities issuing such regulations in this behalf from time to time, including but
not limited to compliance of provisions and rates relating to GST, APMC Tax, Mandi Tax, LBT, Stamp
Duty, etc. as applicable from time to time on the underlying commodity of any contract offered for deposit
/ trading / delivery and the Exchange / Clearing Corporation shall not be responsible or liable on account
of any non-compliance thereof.

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