Futures Contract Specifications. Updated as on 19-December-09
Type of Contract
Futures Contract Specifications
Name of Commodity
NATURAL GAS
Ticker symbol
NATURALGAS
Trading System
NCDEX Trading System
Unit of trading
1250 mmBtu
Delivery unit
10000 mmBtu
Quotation/base value
Rs per mmBtu
Tick size
Rs 0.10 (i.e. 10 paise)
Quality specification
Should be of Standard Pipeline quality.
Basis
Ex- Hazira exclusive of all taxes, levies and other expenses
Delivery center
Hazira
Trading hours
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
Due date/Expiry date
Trading in the contract shall cease on the fourth business day of the contract month, excluding Saturdays, prior to the first calendar day of the next month.
Penalty Structure
The penalty structure for failure to meet delivery obligations will be as per Circular no. NCDEX/TRADING-091/2007/235 dated October 4, 2007
Delivery specification
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.
Delivery Logic
Intention Matching
Closing of contract
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.
Opening of contracts
As per launch calendar
No. of active contracts
As per launch calendar
Price limit
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.
Position limits
Client level: 50,00,000 mmBtu Member level: 2,00,00,000 mmBtu or 20% of the open market 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
Special Margin
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
Final Settlement Price
The Final Settlement Price (FSP) of natural gas contract would be the international spot price of Natural Gas as polled by the Exchange and converted at the USD/Rupee exchange rate prevailing on expiry date.
