Trading in Yellow Soybean Meal (Export) Futures contract will commence as per the details given below: Commodity Symbol Basis *

Transcription

1 NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED Circular to all Trading and Clearing Members of the Exchange Circular No.: NCDEX/TRADING-063/2005/155 Date: July 18, 2005 Subject: Launch of Yellow Soybean Meal (Export) and modifications in existing Yellow Soybean Meal (Domestic) contracts All Trading and Clearing Members and their constituents of the Exchange may note that w.e.f. July 21, 2005 there shall be two different contracts of Yellow Soybean Meal viz: 1. Yellow Soybean Meal (Domestic) with the basis centre as Indore currently traded as Yellow Soybean Meal 2. Yellow Soybean Meal (Export) with the basis centre as Kandla Yellow Soybean Meal (Export) futures contract Trading in Yellow Soybean Meal (Export) Futures contract will commence as per the details given below: Commodity Symbol Basis * Yellow Soybean Meal SBMEXPKDL Ex-Warehouse Kandla, (Export) Exclusive Of Sales Tax *Please refer Annexure I The initial contracts available for trading will be for expiry in the months of October, November and December Contract name: Yellow Soybean Meal (Export) futures contract Instrument Type Asset Symbol Expiry Date FUTCOM SBMEXPKDL 20-OCT NOV DEC-2005 Trading Tick Delivery Price Unit Lot Size Lot 10 MT Rs / Metric Tonne Re MT The detailed contract specifications are attached as an Annexure I to this Circular. The Yellow Soybean Meal (Export) contract will be on Seller s choice to deliver and penalty on seller for not choosing to exercise his option will be 0.5%. 1 / 10

2 The pre expiry margin for Yellow soybean meal (export) contract would be 3% incremental per day for the last 5 trading days. Yellow Soybean Meal (Domestic) Yellow Soybean Meal (Domestic) futures contract on the Exchange is being traded on the basis of Indore center. Following are the changes in the Yellow Soybean Meal (Domestic) contract: Basis Parameter Existing specification applicable to contracts expiring in July, August and September 2005 H Form price delivered Ex- Warehouse, Indore No additional delivery centre Amended specification applicable to contracts expiring in and after October 2005 Ex-Warehouse Indore, inclusive of all taxes Kota and Nagpur Additional delivery centres Price limit Limit 10% Limit 6% Position limits Member-wise: Max (Rs. 40 Member-wise: MT Crores or 15% of open interest), whichever is higher Client-wise: Max (Rs. 20 Crores or10% of open interest), whichever is higher Quality specification Moisture : 11% (Max) Protein : 48 % (Min) Fat : 1.5 % (Max) Fibre : 6.0 % (Max) Sand/Silica : 2% (Max) Urease (by EEC method ) : 0.30 % (Max) Client-wise: MT (This limit will not apply to bonafide hedger if permitted by the Exchange) Moisture :11% basis Protein: 48% basis Oil : 1.5%(Max) Fibre: 6%(Max) Sand/Silica: 2% basis Urease (by EEC method):0.30 units basis Special margins No special margins Special Margin of 5% of the value of the contract whenever the rise or fall in price from the first day s closing price of 20% 2 / 10

3 payable by buyer or seller depending on whether prices rise or fall respectively. The margins shall stay in force so long as price stays beyond the 20% limit and will be withdrawn as soon as the price is within the 20% band. These changes would be applicable for all contracts expiring on and after October, The first contract with the above changes will expire on October 20, 2005 and will be launched on July 21, Currently, the contracts traded on the Exchange are due to expire in months of August and September Annexure II shows the amended contract specification for the Yellow Soybean Meal (Domestic) futures contract expiring on and after October 20, 2005 Premium and Discount for Additional delivery centers for Yellow Soybean Meal (Domestic) The main delivery center for Yellow Soybean Meal (Domestic) is Indore. Additional delivery centers for Yellow Soybean Meal (Domestic) are Kota and Nagpur.The Premium/Discount for delivering Yellow Soybean Meal (Domestic) is given below: 1 Yellow Soybean Meal (Domestic) Kota Premium of Rs. 100/Ton 2 Yellow Soybean Meal (Domestic) Nagpur Discount of Rs.100/Ton For and on behalf of National Commodity & Derivatives Exchange Limited Narendra Gupta Chief Business Officer For further information / clarifications, please contact 3 / 10

4 1. Mr Shrikant Subbarayan- Phone No. (022) / Mr Tapan Mishra Phone No. (022) / Ms Shilpa Ganeriwal Phone No (022) Helpdesk by to: helpdesk@ncdex.com 4 / 10

5 ANNEXURE I to Circular No.: NCDEX/TRADING-063/2005/155 Contract specifications for Yellow Soybean Meal (Export) futures contract Name of commodity Ticker symbol Trading system Basis Unit of trading Delivery unit Quotation/base value Yellow Soybean Meal (Export) SBMEXPKDL NCDEX Trading System Ex-warehouse Kandla, Exclusive of Sales Tax 10 MT 10 MT Rs per Metric Ton Tick size Re. 1 Quality specifications Moisture :11% basis Protein: 48% basis Oil : 1.5%(Max) Fibre: 6%(Max) Sand/Silica: 2% basis Urease (by EEC method):0.30 units basis Quantity variation +/- 2% Delivery center Deliverable grades Trading hours Kandla Yellow soybean meal of grade : 1. Expander type 2. Flaker type As per directions of the Forward Markets Commission from time to time, currently (with effect from April 25, 2005) Mondays through Fridays: 10:00 a. m. to 05:00 p.m. Saturdays: a.m. to 2.00 p.m. 5 / 10

6 The Exchange may vary the above timing with due notice On the expiry date, contracts expiring on that day will not be available for trading after 5 PM. Due date/expiry date Delivery specification Closing of contract Opening of contracts No. of active contracts Price limit Position limits Premium/Discount 20th day of the delivery month If 20th happens to be a holiday, then previous trading day. If 20 th happens to be a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange Upon expiry of the contracts, if any seller with open position desires to give delivery at a particular delivery center, then the corresponding buyer with open position as matched by the process put in place by the Exchange shall be bound to settle by taking physical delivery. All open positions will be settled as per general rules and product specific regulations. Trading in any contract month will open on the 21st day of the month. If the opening day happens to be a non-trading day, contracts would open on the next trading day Minimum 2 contracts with a maximum of 12 contracts running concurrently Limit of 6 per cent Member-wise : 1,00,000 MT Client-wise : 20,000 MT (This limit will not apply to bona fide hedger if permitted by the exchange) Quality variations shall be accepted with discounts as under: Moisture: From 11% to 12%-accepted at 1:1 or part thereof. 6 / 10

7 Above 12% rejected. Protein: From 48% to 46%- accepted at 1:1 or part thereof. Below 46% rejected. Oil: Above 1.5% rejected Fiber: Above 6% rejected Sand/Silica: From 2% to 2.5%- accepted at 1:1 or part thereof, above 2.5% rejected. Urease activity: From 0.3 units to 0.35 units accepted at 0.1% for every 0.01 unit increase in Urease activity, above 0.35 units rejected. Free from pesticide (especially organochlorine compound group e.g. DDT, dieldrin including aldrin and heptachlor) Free from poisonous seeds and/or foreign seeds, free from castor seeds and/or husk, free from lumps, free from weevils, free from urea and/or other chemical substance. Special Margins Special margin of 5% of the value of the contract whenever the rise or fall in price from the first day s closing price of 20% payable by buyer or seller depending on whether prices rise or fall respectively. The margins shall stay in force so long as price stays beyond the 20% limit and will be withdrawn as soon as the price is within the 20% band. 7 / 10

8 ANNEXURE II to Circular No.: NCDEX/TRADING-063/2005/155 Contract specifications for Yellow Soybean Meal (Domestic) futures contract Name of commodity Ticker symbol Trading system Basis Unit of trading Delivery unit Quotation/base value Yellow Soybean Meal (Domestic) SBMEALIDR NCDEX Trading System Ex-Warehouse Indore, inclusive of all taxes 10 MT 10 MT Rs per MT Tick size Re 1 Quality specification Moisture :11% basis Protein: 48% basis Oil : 1.5%(Max) Fibre: 6%(Max) Sand/Silica: 2% basis Urease (by EEC method):0.30 units basis Quantity variation +/- 2% Delivery center Deliverable grades Additional delivery center Trading hours Indore Yellow Soybean meal of grade : a. Expander type b. Flaker type Kota, Nagpur with location wise premium/discount as announced by the Exchange from time to time. As per directions of the Forward Markets Commission from 8 / 10

9 time to time, currently (with effect from April 25, 2005) Mondays through Fridays: 10:00 a. m. to 05:00 p.m. Saturdays: a.m. to 2.00 p.m. The Exchange may vary the above timing with due notice. On the expiry date, contracts expiring on that day will not be available for trading after 5 PM. Due date/expiry date Delivery specification Closing of contract Opening of contracts No. of active contracts 20th day of the delivery month If 20th happens to be a holiday, then previous trading day. If 20 th happens to be a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange Upon expiry of the contracts, if any seller with open position desires to give delivery at a particular delivery center, then the corresponding buyer with open position as matched by the process put in place by the Exchange shall be bound to settle by taking physical delivery All open positions will be settled as per general rules and product specific regulations. Trading in any contract month will open on the 21st day of the month. If the opening day happens to be a non-trading day, contracts would open on the next trading day Minimum 2 contracts with a maximum of 12 contracts running concurrently Price limit Limit 6 % Position limits Member-wise : 100,000 MT Client-wise : 20,000 MT (This limit will not apply to bona fide hedger if permitted by the exchange) 9 / 10

10 Quality Allowances (For delivery) Special Margins Quality variations shall be accepted with discounts as under: Moisture: From 11% to 12% accepted at 1:1 or part thereof. Above 12% rejected. Protein: From 48% to 46% accepted at 1:1 or part thereof. Below 46% rejected. Oil: Above 1.5% rejected Fiber: Above 6% rejected. Sand/Silica: From 2% to 2.5% accepted at 1:1 or part thereof, above 2.5% rejected. Urease activity: From 0.3 units to 0.35 units accepted at 0.1% for every 0.01 unit increase in Urease activity, Above 0.35 units rejected. Free from pesticide (especially organochlorine compound group e.g. DDT, dieldrin including aldrin and heptachlor) Free from poisonous seeds and/or foreign seeds, free from castor seeds and/or husk, free from lumps, free from weevils, free from urea and/or other chemical substance. Special Margin of 5% of the value of the contract whenever the rise or fall in price from the first day s closing price of 20% payable by buyer or seller depending on whether prices rise or fall respectively. The margins shall stay in force so long as price stays beyond the 20% limit and will be withdrawn as soon as the price is within the 20% band. 10 / 10