Circular No: ACE/T&S-014/2011/062 Date: July 04, 2011 Commencement of trading Launch of Guar seed and Guar gum contracts In terms of the provisions of Bye Laws, Rules and Business Rules of the Exchange, members are hereby informed the commencement of futures trading in Guar seed and Guar gum contracts on the Exchange platform from July 06, 2011. Initially September 2011, October 2011 and November 2011 expiry contracts in Guar Seed and Guar Gum will be available for trading on the Exchange platform. The contract specifications and launch calendar for Guar seed and Guar gum is enclosed as Annexure. Sr. Name of the Contract Expiry Ticker Symbol Reference to No. Commodity Month Contract specifications 1 Guar Seed September 2011 GUAR Annexure I October 2011 November 2011 2 Guar Gum September 2011 GUARGUM Annexure II October 2011 November 2011 Subsequent contracts will be available for trading as per the launch calendar. The location premium discount will be announced prior to the launch of the contracts. Members and their constituents are requested to take note of the same.
For and on behalf of Ace Derivatives and Commodity Exchange Ltd. Selven Rodrigo Head Business Development For any clarifications or assistance, please contact the Customer Service Group at 022-6670 9201 or send us an email at services@aceindia.com
Contract specification of Guar seed Annexure I Name of Commodity Ticker symbol Basis centre Unit of trading Delivery Type Delivery unit Price quotation Guar Seed GUAR Ex-Warehouse Jodhpur (inclusive of all taxes, Sales tax / VAT as the case may be) 10 MT Compulsory 10 MT Rs per quintal (100 kgs) Tick size Re 1 Quality specification Whitish Foreign matter Damaged seeds Moisture 98 % basis 0.5 % basis 0.5 % basis 8 % basis Quality premium / discount Quality delivery with variation shall be acceptable with premium / discount as under: Whitish: Moisture Below 98% and upto 95% accepted at 1:0.5 discount Below 95% and upto 90% accepted at 1:1 discount Below 90% rejected Above 8% and upto 10% at 1:1 discount Above 10% rejected Foreign matter: Upto 2% accepted at 1:1 discount Above 2% and upto 3% accepted at 1:1.5 discount ( Foreign matter means anything other than Guar seed e.g. sand, silica, pebbles, stalks and other seeds) Damaged seeds: Above 0.5% and upto 2% accepted at 1:0.75 discount
The total of Foreign matter and Damaged seed should not exceed 4% Quantity Variation +/- 2% Delivery Method Delivery Centre Demat Delivery Seller shall deliver the goods through Exchange Accredited Warehouse. Goods will have to pass through the Quality Certification process during inbound delivery. Quality certification of Goods will be done by Exchange authorized assayer. Buyer will receive the goods from the Exchange Accredited Warehouse. Jodhpur (Delivery will be accepted in Exchange accredited warehouse located within 50 km radius from the municipal limits) Additional centre delivery Sellers can also tender Guar Seed delivery from the following delivery centers: (Delivery will be accepted in Exchange accredited warehouse located within 50 km radius from the municipal limits) State Delivery Centre Bikaner Rajasthan Nokha Gujarat Deesa Hissar Haryana Adampur Location Premium/Discount Trading Hours Contract Expiry Date Premium and discount for different locations shall be announced by the Exchange before launching of contract. Monday to Friday: 10.00 a.m. to 5.00 p.m. Saturday: 10.00 a.m. to 2.00 p.m. 20th day of the delivery month.
If 20 th happens to be a holiday, a Saturday or a Sunday then the Expiry date shall be the immediately preceding trading day of the Exchange, which is not a Saturday. The settlement of contract would be by a early delivery system of a maximum of 15 Pay-ins and Pay-outs or less including the last Payin and Pay-out which would be the Final Settlement of the contract. Opening of Contract Daily Price Limit Tender Period Delivery Specification New contracts will be available for trading from 11 th day of the month as per the launch calendar. If the 11 th day happens to be a nontrading day, new contracts would open on next trading day. Daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed daily price limit there will be a cooling off period for 15 minutes. Trade will be allowed during this cooling off period within the price band. Thereafter the price band would be raised by (+/-) 1%. If the price hits the revised price band (4%) again during the day, trade will only be allowed within the revised price band. No trade / order shall be permitted during the day beyond the revised limit of (+ / -) 4%. Tender Date : T Tender Period: Tender period would be of 14 Calendar days during trading hours prior to the expiry date of the contract. Pay-in and Pay-out: on a T+2 basis. If the tender date is T then, payin and pay-out would happen on T + 2 day. If such a T + 2 day happens to be a Saturday, a Sunday or a holiday at the Exchange, clearing banks or any of the service providers, Pay-in and Pay-out would be effected on the next working day. During the period from E-14 to E-1, Seller & Buyer having open position are required to give their intention/notice to deliver to the extent of his open position. The delivery position would be arrived at by the exchange based on the information to give/take delivery furnished by the seller and buyer as per the process put in place by the exchange for effecting physical delivery. If the intention of the buyers/sellers matches, then the respective positions would be
closed out by physical deliveries. If there is no delivery intention matching between sellers and buyers, then such intentions will get automatically extinguished at close of E-1 day. Intentions can be withdrawn during the course of E-14 to E-1 day if they remain unmatched. Upon expiry (i.e E) of the contracts all the outstanding open positions should result in compulsory delivery. In respect of delivery defaults after the matching of delivery intentions, penalty provisions as applicable in the case of delivery defaults in compulsory delivery contracts will be applicable. Position Limits Maximum order size Member level: 15,000 MT or 15 % of market open interest, whichever is higher. Client level: 3,000 MT The above limits will not apply to bonafide hedgers. For bonafide hedgers the Exchange will decide the limits on a case-to-case basis. Near month limits (Applicable during the last 7 trading days of the expiry of the contract). Member level: 5,000 MT or 15 % of the market-wide near month open position, whichever is higher. Client level: 1,000 MT. 500 MT ( 50 Lots) The Exchange shall adopt the following methodology for arriving at the Final Settlement Price. The Final Settlement Price (FSP) shall be arrived at by taking the simple average of the last three trading days polled spot price viz., E0 (expiry day), E-1, and E-2. Final Settlement Price In the event of the spot prices for any of the E-1 and E-2 is not available, the spot price of E-3 would be used for arriving at the average. In case the spot prices are not available for both E-1 and E-2, then the average of E0 and E-3 (two days) would be taken. If all the three days prices viz., E-1, E-2 and E-3 are not
available, then only one day s price, viz., E0, will be taken as the FSP. Minimum Margin Special Margin Initial 5% When there is excess volatility, Exchange may impose special margin of appropriate percentage, as deemed fit and proper on either long or short side in respect of all outstanding positions. This margin will remain till such excess volatility persists, after which the same will be relaxed. Additional Margin Regulatory Margin The Exchange may impose additional margins on both long and short side at such other percentage, as deemed fit. Removal of such Margins will be at the discretion of the Exchange. In addition to the above margins, the Regulator may impose additional margins on long and/or short side at such other percentage as deemed fit. Removal of such Margins will be at the discretion of the Regulator.
Outbound Tolerance Limit Commodity Specifications Basis Deliverable Range Below 98% and upto 95% accepted at 1:0.5 discount Whitish 98% Below 95% and upto 90% accepted at 1:1 discount Below 90% rejected Upto 2% accepted at 1% (0.5% 1:1 discount Foreign Matter Foreign Matter and Damaged Above 2% and upto + 0.5% Seed (combined) 3% accepted at 1:1.5 Damaged discount Seed) Max Tolerance (for all characteristics) Permissible Tolerance +/-0.5% +/-0.5% (total) +/-0.75% Note: Tolerance limit is applicable only for outbound deliveries. Variation in quality parameters within the prescribed tolerance limit as above will be treated as good delivery when members/clients lift the materials from warehouse. These permissible variations shall be based on the parameters found as per the immediate preceding test certificate given by exchange approved assayer. Contract Launch Calendar Guar Seed Contract Launch Month Contract to be launched July 06, 2011 September 2011, October 2011 and November 2011 July 11, 2011 December 2011
Annexure II Contract Specifications of Guar Gum Name of Commodity Ticker symbol Basis centre Unit of trading Delivery Type Delivery unit Price quotation Guar Gum GUARGUM Ex-Warehouse Jodhpur (inclusive of Sales tax/vat) 5 MT Compulsory delivery 5 MT Rs per quintal (100 kgs) Tick size Re. 1 Quality specification Residue insoluble in Acid Protein Undehusked Splits Black, dark red and brown coloured splits Through 14" mesh Through 20" mesh Moisture Foreign Particles (all non gum particles) 3% (Max) 5% (Max) 10 % (Basis) 1% (Max) 3% (Max) 0.1% (Basis) 8% (Basis) 0.3% (Basis) Quality premium / discount Quality delivery with variation shall be acceptable with premium/discount as under Undehusked splits*: Above 10% upto 12% accepted at 1:0.5 discount Above 12% rejected Through 20" mesh Above 0.10 % upto 0.25% accepted at 1:1 discount Above 0.25% rejected
Moisture Above 8% upto 10% accepted at 1:1 discount Above 10.00% rejected Foreign particles Above 0.30 % upto 0.50 % accepted at 1:2 discount Above 0.50% rejected *Total of 'Undehusked splits' and 'Black, dark red and brown coloured splits' not to exceed 12% Quantity Variation +/- 2% Delivery Method Delivery Centre Additional delivery centre Location Premium/Discount Demat Delivery Seller shall deliver the goods through Exchange Accredited Warehouse. Goods will have to pass through the Quality Certification process during inbound delivery. Quality certification of Goods will be done by Exchange authorized assayer. Buyer will receive the goods from the Exchange Accredited Warehouse. Jodhpur (Delivery will be accepted in Exchange accredited warehouse located within 50 km radius from the municipal limits.) Sellers can also tender Guar Gum delivery from the following delivery centers: (Delivery will be accepted in Exchange accredited warehouse located within 50 km radius from the municipal limits.) Delivery Centre Bikaner Nokha Deesa Premium and discount for different locations shall be announced by the Exchange before launching of contract.
Trading Hours Monday to Friday: 10.00 a.m. to 5.00 p.m. Saturday: 10.00 a.m. to 2.00 p.m. 20th day of the delivery month. Contract Expiry Date Opening of Contract Daily Price Limit Position Limits Maximum order size If 20 th happens to be a holiday, a Saturday or a Sunday then the Expiry date shall be the immediately preceding trading day of the Exchange, which is not a Saturday. New contracts will be available for trading from 11 th day of the month as per the launch calendar. If the 11 th day happens to be a nontrading day, new contracts would open on next trading day. Daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed daily price limit there will be a cooling off period for 15 minutes. Trade will be allowed during this cooling off period within the price band. Thereafter the price band would be raised by (+/-) 1%. If the price hits the revised price band (4%) again during the day, trade will only be allowed within the revised price band. No trade / order shall be permitted during the day beyond the revised limit of (+ / -) 4%. Member level: 5,000 MT or 15 % of market open interest, whichever is higher. Client level: 1,000 MT The above limits will not apply to bonafide hedgers. For bonafide hedgers the Exchange will decide the limits on a case-to-case basis. Near month limits (Applicable from one month prior to expiry date of the contract). Member level: 1,000 MT or 15 % of the market-wide near month open position, whichever is higher. Client level: 200 MT 250 MT ( 50 Lots) Final Settlement The Exchange shall adopt the following methodology for arriving at the Final Settlement Price.
Price (FSP) The Final Settlement Price (FSP) shall be arrived at by taking the simple average of the last three trading days polled spot price viz., E0 (expiry day), E-1 and E-2. In the event of the spot prices for any of the E-1 and E-2 is not available, the spot price of E-3 would be used for arriving at the average. In case the spot prices are not available for both E-1 and E-2, then the average of E0 and E-3 (two days) would be taken. If all the three days prices viz., E-1, E-2 and E-3 are not available, then only one day s price, viz., E0, will be taken as the FSP. Minimum Initial Margin Special Margin Additional Margin Regulatory Margin 5% When there is excess volatility, Exchange may impose special margin of appropriate percentage, as deemed fit and proper on either long or short side in respect of all outstanding positions. This margin will remain till such excess volatility persists, after which the same will be relaxed. The Exchange may impose additional margins on both long and short side at such other percentage, as deemed fit. Removal of such Margins will be at the discretion of the Exchange. In addition to the above margins, the Regulator may impose additional margins on long and/or short side at such other percentage as deemed fit. Removal of such Margins will be at the discretion of the Regulator.
Outbound Tolerance Limit (Guar gum) Commodity Specifications Basis Undehusked splits 10% Black, dark red and brown 1% coloured splits (Max) Through 14" mesh 3% (Max) Through 20" mesh 0.10% Foreign Particles (all non gum particles) 0.30% Max Tolerance (for all characteristics) Deliverable Range Upto 10 % delivery at par, above 10% upto 12% accepted at 1:0.5 discount, above 12% rejected Upto 1% delivery at par. Above 1% rejected Upto 3% delivery at par. Above 3% rejected Upto 0.10% delivery at par, above 0.10 % upto 0.25% accepted at 1:1 discount, above 0.25% rejected Upto 0.30 % accepted at par, above 0.30 % upto 0.50 % accepted at 1:2 discount, above 0.50% rejected Permissible Tolerance (+/-) 0.25% (+/-) 0.1 % (+/-) 0.5 % (+/-) 0.05 % (+/-) 0.05 % (+/-) 0.75% Note: Tolerance limit is applicable only for outbound deliveries. Variation in quality parameters within the prescribed tolerance limit as above will be treated as good delivery when members/clients lift the materials from warehouse. These permissible variations shall be based on the parameters found as per the immediate preceding test certificate given by exchange approved assayer. Contract Launch Calendar Guar Gum Contract Launch Month Contract to be launched July 06, 2011 September 2011, October 2011 and November 2011 July 11, 2011 December 2011