Trading Hours |
Hours of Trading in the
PMEX Maize Futures Contract shall be Monday
to Friday (excluding Exchange specified
holidays) as given below or as Specified by
the Exchange from time to time:
Normal Trading Session
: 10 am to 6pm PST
|
Unit of Trading |
10
Metric Tons
|
Price Quotation |
Price quoted shall be in Rupees per 100
kilogram, Ex- Okara or at any other delivery
center as specified by the Exchange.
|
Delivery Unit |
10
MT or as specified by the exchange
|
Trading System |
PMEX
Trading System
|
Tick Size |
Rs
1.0
|
Quantity Variation |
+/-
5%
|
Quality Specifications |
As Per Trade Practice
1.
Moisture 12%
2.
Grain Size Healthy
Physical Appearance
3.
Color
Yellow/White
Any
change would be communicated by the Exchange
before the start of contract.
|
Quality Premium/ Discount |
As communicated by the
Exchange from time to time based on the
industry practices.
|
Packaging
|
Maize shall be delivered
in new or once used Jute bags of 100 Kg.
Tare allowance will be applicable as per
applicable industry practice and as
communicated by the Exchange.
Any
change would be communicated in advance by
the exchange
|
Delivery Centers |
Okara, at Exchange
approved and designated warehouses.
Other delivery centers
will be announced by the Exchange from time
to time. The premium, discount or no
allowance for each delivery center other
than the main delivery centre (Okara) will
be announced by the Exchange from time to
time and will be binding on both buyer and
seller
|
Contract Months |
Contract months would be
made available at the discretion of the
Exchange depending on the needs of the
market.
|
Opening of Contract |
Each contract will be
open at least one month before its last
trading day.
|
Last Trading Day |
Third Wednesday of the
contract month or any day specified by the
Exchange as a last trading day. If third
Wednesday is an Exchange holiday the next
working day will be the last trading day.
|
Daily Settlement Price |
The Daily settlement
price shall be the consensus price
determined during the pre-close session.
Exchange can also determine the daily
settlement price in the manner described
hereunder or in such other manner as may be
prescribed by the Exchange:
-
Last Traded
Price
-
Value
Weighted Average Price
-
Theoretical
Futures Price based on the spot price
obtained from the market sources.
All open positions will
be marked to market at least once a day.
|
Final Settlement Price |
Final settlement price
will be the daily settlement price of the
last trading day of the contract or as
determined by the Exchange.
|
Price Fluctuation |
+/- 5% or as specified by
the Exchange.
|
Settlement Mode |
All open positions after
the close of the contract will only be
settled through delivery. Those who fail to
meet their delivery obligations will be
liable to penal charges as determined by the
Exchange.
|
Notice Period |
Sellers with open short
positions and intending to deliver will be
required to inform the exchange two trading
days prior to the last trading day (E-2,
where E refers to the expiration day) or
latest by the closing time of the contract
of their intention to deliver along with the
quantity which will be delivered and the
expected delivery center form the Exchange
approved list.
The corresponding Buyers
with open long positions matched randomly by
the Exchange after the expiration of the
contract with the Sellers will be bound to
settle by taking physical delivery. Exchange
may seek buyers’ preference of delivery
centre while matching the buyer and seller
for delivery.
The names of the matched
buyers and sellers would be communicated to
respective members on E+1.
Any failure to deliver by
the Seller or taking delivery by the matched
Buyers will result in a penalty determined
by the Exchange.
|
Delivery Mode & Delivery Period |
Upon Expiration of the
contract the seller with open position will
have three business days (E+3) to deliver
the Maize at the Exchange approved and
designated warehouse after completing all
Exchange specified procedures for delivery
including the quality and quantity
certification.
The delivery can also be
made through an Exchange approved Warehouse
Receipt.
|
Settlement of Delivery Outside the
Exchange |
The matched buyer and
seller can mutually agree on the off
Exchange settlement of the delivery. In such
a case they need to inform the Exchange
within the delivery period. The Exchange
will then settle their accounts as per final
settlement price.
|
Pay-in and Pay-out of Funds for Final
Settlement |
The buyer needs to pay
funds in full to the Exchange by E+2, and
after that the buyer will be eligible to
receive the documents to get the delivery
from the Exchange approved warehouse. The
seller will be eligible to receive the funds
on E+3, once he has delivered the Maize at
the Exchange approved warehouse after
completing all delivery related
requirements.
|
Quality Certification |
For the Maize delivered
at an Exchange approved and designated
warehouse, the seller needs to obtain a
quality certificate from an Exchange
approved analyzer.
|
Cost of certification, weighing, storage
and delivery etc. |
For the Maize tendered at
an Exchange approved and designated
warehouse all charges associated with
quality certification, weighing, storage,
and Exchange required documentation up to
the end of day of delivery will borne by the
Seller.
Buyers shall pay all
charges including storage charges after the
business day following the day of the
delivery.
|
Position Limit
|
As determined by the
Exchange. |
Margin Requirement |
The amount of margin
payable by members in respect of their
outstanding Maize futures contracts shall be
determined by the Exchange. The Exchange
will adjust margin requirements as and when
volatility in the underlying changes.
Margin shall be
calculated on a gross basis on all open
positions held in different maturity
contracts in the same commodity up to the
Client Level. The Exchange may give calendar
spread discounts.
|
Initial Margin |
Initial Margin will be
calculated using Value-at-Risk (VaR)
methodology intended to cover the largest
loss over a 1-day Look Ahead period that can
be encountered on 99% of the days (99% Value
at Risk) or as specified by the Exchange.
|
Delivery Margin |
Delivery Margin will be
imposed in increments of 2% per day (or as
specified by the Exchange) on all open
positions starting at five days prior to
expiration (E-5), such that delivery margin
payable on last trading will be 10% (or as
specified by the Exchange). Delivery margin
shall be in addition to the initial margin.
|
Special Margin |
Exchange reserves the
right to impose additional margin due to
increased or excessive volatility or due to
any other reason Exchange feels appropriate
to impose such margin.
|
Further Regulation |
This contract shall be
subject, where applicable, to the
Regulations of the Pakistan Mercantile
Exchange.
|