Futures Contract Specifications for Thermal Coal - Wani. Updated as on 01 April 09.
(Applicable for contracts expiring in June 2009 and thereafter)
Type of Contract
Futures Contract Specifications
Name of Commodity
Thermal Coal
Ticker symbol
COALWANI
Trading System
NCDEX Trading System
Basis
Ex-warehouse Wani, exclusive of sales tax and local levies
Unit of trading
10 MT
Delivery unit
10 MT
Quotation/base value
Rs. per MT
Tick size
Rs. 10 per MT
Quality specification
Gross Calorific Value(GCV) (ADB)
4000 kcal/kg
Total Moisture (ARB)
12%
Ash (ADB)
35%
Size
> 10 mm
Quantity variation
+/- 5 %
Delivery center
Wani (Wani and within 100 kms of Wani)
Hours of Trading
As per directions of the Forward Markets Commission from time to time, currently –
Mondays through Fridays: 10:00 AM to 5:00 PM
Saturdays: 10.00 AM to 2.00 PM
The Exchange may vary the above timing with due notice
Due Date/ Expiry Date
Last Day of every month
If the Last Day happens to be a non-trading day, a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange, not being a Saturday.
Delivery Specification
Upon expiry of the contract all outstanding positions will result in 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.
Delivery Logic
Compulsory Delivery
Opening of contracts
Trading in any contract month will open on the 1st day of the month. If the 1st day happens to be a non-trading day, contracts would open on the next trading day.
Closing of contract
Upon the expiry of contract all outstanding open positions would result in compulsory delivery
No. of active contracts
As per the Contract Launch Calendar.
Price band
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%.
If the price hits the revised price band (9%) again during the day, trade will only be allowed with the revised price band. No trade/order shall be permitted during the day beyond the revised limit of (+/-) 9%.
Position limits
Member–wise: 12,00,000 MT for all contracts or 15% of market wide Open Interest whichever is higher.
Client–wise: 4,00,000 MT
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.
Premium/Discount
Premium/Discount for GCV:
Guaranteed GCV = 4000 kcal/kg.
Premium/Discount :
Adjusted Value = Price x GCV(ADB)
Guaranteed GCV (4000)
If GCV is less than 3700 kcal/kg, the goods will be rejected.
If GCV is greater than 4300 kcal/kg, no premium would be applicable.
Premium/Discount for Total Moisture:
Total moisture in excess of 12% (subject to maximum of 14%) shall be adjusted for as follows:
Adjusted Quantity=Contract quantity x (100 - (Actual TM-Basis TM)/100
Total moisture of less than 12% shall not attract any premium.
If Total Moisture is greater than 14% the goods will be rejected.
Premium/Discount for Ash:
Ash of less than 35% shall not attract any premium.
If Ash is greater than 37% the goods will be rejected.
Premium/Discount for size : If more than 15% of the coal is less than 10 mm in size, a discount of Rs 25/MT will be applicable on every additional percentage over 15%
