Type of Contract Futures Contract Specifications
Name of Commodity HEATING OIL
Ticker symbol HEATINGOIL
Trading System NCDEX Trading System
Unit of trading 4200 US gallons
Delivery unit 2100000 US gallons with +/- 2% tolerancelimit
Quotation/base value Rs per US Gallon
Tick size Rs 0.05 (i.e. 5 paise)
Quality specification Generally conforms to industry standardswith maximum Sulphur of 0.2% (total percentage by mass). Also confirming No.2Heating Oil industry norms.
Basis Ex - Mumbai (excluding all taxes, sales tax / VAT as the casemay be, levies and other expenses)
Delivery center JNPT/ Mumbai Port
Trading hours Mondays through Fridays - 10:00 AM to 11:30PM
10:00 AM to 11:55 PM (during USday light saving period)
Saturdays - 10:00AM to 02:00 PM
Expiry Date - at 11:30 PM / 11:55PM *
All timings are as per IndianStandard Timings (IST)
*during US day light savingperiod
Due date/Expiry date 25th day of the delivery month
If 25th happens to be a holiday,a Saturday or a Sunday then the due date shall be the immediately precedingtrading day of the Exchange
Delivery specification The buyer and seller shall give intentionsof taking/giving delivery through the delivery request window at least threetrading days prior to the expiry of the contracts and such intentions can begiven during 3 days which would be notified separately. This will be matched byexchange for physical delivery as per the process put in place by the Exchange.
Closing of contract
Allopen positions for which delivery intentions have not been received or forwhich delivery intentions have been rendered but remain unmatched for want ofcounterparty to settle delivery, will be cash settled at Final Settlement Priceon the expiry of the contract.
Opening of contracts
Tradingin any contract month will open on the 26th day of the month.
If the 26th day happens to be anon-trading day, contracts would open on the next trading day
No. of active contracts As per launch calendar
Basedaily price fluctuation limit is (+/-) 4%. If the trade hits the prescribeddaily price limit, the price limits will be relaxed up to (+/-) 6% without anybreak/ 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 pricelimit will be further relaxed up to (+/-) 9%. Trade will be allowed during thecooling off period within the price band of (+/-) 6%.
In case of price movement inInternational markets which is more than the maximum daily price limit(currently 9%), the same may be further relaxed in steps of 3% with theapproval of FMC.
Position limits Member: 25,000 contracts or 15% of marketwide open interest, whichever is higher
Client: 5,000 contracts.
The above limits will not applyto bona fide hedgers. For bona fide hedgers, the Exchange will, on a case tocase basis, decide the hedge limits. Please refer to Circular No.NCDEX/TRADING-100/2005/219 dated October 20,2005.
Special Margin In case ofadditional volatility, a special margin at such other percentage, as deemedfit, will be imposed in respect of outstanding positions, which will remain inforce as long as the volatility exists, after which the special margin may berelaxed
Final Settlement Price The Final Settlement Price (FSP) of HeatingOil contract would be the international spot price of Heating Oil as polled bythe Exchange and converted at the USD/Rupee exchange rate prevailing on expirydate.
Contract Launch Calendar ofHeating Oil :-
Contract Launch Date Contract Expiry Date
October 2010 January 2011
November 2010 February 2011
December 2010 March 2011
January 2011 April 2011
February 2011 May 2011
March 2011 June 2011
Members and market participantswho enter into buy and sell transactions may please note that they need to beaware of all the factors that go into the mechanism of trading and clearing, aswell as all provisions of the Exchanges Bye Laws, Rules, Regulations, ProductNotes, circulars, directives, notifications of the Exchange as well as of theRegulators, Governments and other authorities.
Members and market participantstrading on the Exchange in the commodity contracts shall be deemed to be awareof applicable laws and amendments thereof from time to time, includingprovisions and rates relating to the sales tax, value added tax APMC Tax, MandiTax, octroi, excise duty, stamp duty, etc., applicable on the underlyingcommodity of any contract offered for trading.
The Exchange shall not beresponsible or liable on account of non compliance by any of the members andmarket participants of any such applicable laws or any amendments thereofincluding not being aware of rates of taxes, levies, etc., on the underlyingcommodity of any contract offered for trading.
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