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Deliverable contracts

Operations

90 Day Bank Accepted Bill Contract
Greasy Wool Futures Contract
New Zealand Equity Options
Individual Share Futures Contract

For deliverable contracts, all bought and sold positions in existence as at the close of trading in the relevant contract month shall be settled via physical delivery. It must be noted that the Greasy Wool Futures (21 micron) Contract has a re-tender period, during which Buying Clearing Participants may be assigned a delivery prior to the last trading day.

Deliverable contracts traded at the SFE include:

Interest Rates

IR - 90 Day Bank Accepted Bill Futures

Commodities

GW - Greasy Wool Futures (21 Micron)

Equity

ZE - Contact Energy Limited
ZF - Fletcher Building Limited
ZT - Telecom Corp of NZ Ltd
ZW - The Warehouse Group Ltd

Individual Share Futures

AZ - ANZ Bank ISF
BC - Westpac Banking Corporation ISF
BL - BHP Billiton ISF
BO - Boral ISF
BP - BlueScope ISF
CA - Rio Tinto ISF
CB - Commonwealth Bank ISF
CM - Coles Group Limited ISF
LH - Lihir Gold ISF
NB - National Australia Bank ISF
TA - Telstra Corporation ISF

90 Day Bank Accepted Bill Contract

In the expiry of the 90 Day Bank Accepted Bill Contract the Seller must deliver either:

Face value of "paper" bank accepted bills of exchange (BAB) or "dematerialised" EBAs (bills), comprising of either one bill having a face value of $1,000,000 or
$1,000,000 face value of "paper" negotiable certificates of deposit (NCD) or "dematerialised" ECDs, comprising of either one NCD having a face value of $1,000,000.

Each BAB, EBA, NCD or ECD tendered against a contract must have been accepted or issued by the same Approved Bank (see below), be payable at the same city branch of an Approved Bank (in Sydney, Melbourne, Perth, Brisbane or Adelaide) and have the same maturity date. In addition, each bill tendered must have been drawn by the same drawer.

Any BAB, EBA, NCD or ECD tendered, must have a maturity date of no less than 85 days and no more than 95 days from the settlement date, and be classified as 'early' month paper. 'Early' month paper matures on business days between the 1st and 15th of the month.

The maximum ‘parcel size’ that is to be delivered is AUD100million. This is an operational requirement and has no impact on the maximum ‘Delivery size’. This is applicable when the nominated line of stock of any value is sent to the Buyer via the SFETRADE function, if the line is greater than 100million, it is to be split into maximum AUD100million lines.

Approved banks

The Board of the Exchange designates those banks which are known as Approved Banks for tendering purposes. The Approved Banks are:

Australia and New Zealand Banking Group Limited
BNP Paribas
Commonwealth Bank of Australia
National Australia Bank Limited
Westpac Banking Corporation

Approved settlement facility

The Approved Settlement Facility for the delivery of BABs, EBAs, NCDs, or ECDs is Austraclear Limited. Sellers deliver and receive payment for their BABs, EBAs, NCDs, or ECDs and Buyers pay for and take delivery of BABs, EBAs, NCDs, or ECDs through the Austraclear computerised recording and settlement system.

Delivery Procedures Timetable

Day	Time	Details
T Last Trading Day (Nomination Day)	12:00pm	Trading ceases.
	1:00pm	Participants complete allocations and netdowns in OM SECUR.
	2:00pm	Participants lodge Ending Position Confirmation form - Bank Accepted Bills (PDF 17KB) to SFE Clearing.
	5:00pm	Seller or agent to have nominated within Austraclear BABs, EBAs, NCDs or ECDs to be transferred on delivery day.
	7:00am	SFE Clearing to have provided Buyer and Seller advices to Clearing Participants. Advice details. Seller and Buyer advice details issued on Settlement Day
T+1 Delivery Day (Settlement Day)	10:00am	Seller to have transferred BABs, EBAs, NCDs or ECDs in accordance with details given to SFE Clearing via Austraclear.
	11:00am	Buyer to have checked details of BABs, EBAs, NCDs or ECDs are in accordance with those advised by SFE Clearing. Buyer confirm acceptance for irrevocable settlement using Austraclear. Buyer to notify SFE Clearing if Bank Bills or CDs are not in accordance with details given.
	3:00pm	Settlement must have successfully passed through the Cash Limits test and Real Time Gross Settlement test. Seller to notify SFE Clearing if Bank Bills or CDs are not confirmed for irrevocable settlement ie payment not received.

BABs/EBAs	NCDs/ECDs
Full Austraclear Participant Name	Full Austraclear Participant Name
Face Value	Face Value
Drawer	Issuing Bank
Acceptor
Bank/Branch of Payment	Bank/Branch of Payment
Maturity Date	Maturity Date
Tendering Clearing Participant	Tendering Clearing Participant

Details given to the Seller:

Name of Full Participant to which BABs, EBAs, NCDs or ECDs are to be transferred.

Details of the BABs EBAs, NCDs or ECDs to be transferred.

Face value amount to be received.

Details given to the Buyer:

Name of Full Participant to which BABs, EBAs, NCDs or ECDs will be transferred

Details of the BABs, EBAs, NCDs or ECDs being transferred.

Consideration amount to be paid.

Greasy Wool Futures (21 micron) Contract

The Greasy Wool Contract has an extended delivery period. This extension allows Selling Clearing Participants to deliver wool at any time during the five days leading up to the expiry of the contract, which is known as the delivery period.
The delivery(s) are randomly assigned to Buying Clearing Participants with open positions.

Both Buying and Selling Clearing Participants receive details of the delivery by 7:00am the following business day. The Buying Clearing Participants are required to pay SFE Clearing the calculated settlement amount and take delivery of the wool the same day. Settlement funds are then remitted to the Selling Clearing Participants.
Within the delivery period the Seller must deliver wool that meets required specifications. These specifications are set on individual bales, wool lots and the final combined parcel, with specification details being outlined within the Individual Contract Specifications for the Greasy Wool Contract.

Prior to being admitted to the deliverable stock pile, each lot must be measured by an Approved Testing Organisation to ensure the wool characteristics meet the Exchange specifications. Measurements are to be in accordance with the International Wool Textile Organisation (IWTO) approved testing procedures. These procedures must be tested by the Australian Wool Testing Authority (AWTA), with the style and colour characteristics being appraised by the Australian Wool Exchange (AWEX).

Approved Warehouses

Delivery can only be effected in relation to wool which is stored at an Approved Warehouse(s). The delivery of a single wool contract can occur from multiple warehouse sites. The number of delivery locations is restricted to a maximum of four and is restricted to a state basis.

Warehouse Receipt(s) certify that wool is in an Approved Warehouse(s) and is used for the purpose of transferring title. To obtain an SFE Warehouse Receipt(s), the Warehouse(s) needs to sight the AWTA/AWEX certificates. Separate Warehouse Receipt(s) are required for each futures parcel of wool, ie: if deliveries are being made against three (3) wool futures contracts, separate Warehouse Receipt(s) are required for each futures lot.

The Approved Warehouses are situated within one of the following locations, with more detailed information being available within the SFE Operating Rules:

New South Wales
Victoria
Queensland
South Australia
Western Australia
Tasmania

Settlement Price

The settlement price of each contract is affected by a Premium and Discount Schedule (PDS), which is published by the SFE on the Friday prior to the last trading day. The PDS grades the wool being delivered based on the Micron, Vegetable Matter Base, Strength and Location.

Day	Details
Any Business Day prior to Delivery Day 1	Selling Clearing participant submits original Warehouse receipt, Measurement and Appraisal ceritficate to SFE Clearing for checking.
	SFE Clearing checks documentation and admits stock to Safe Accommodation.
	SFE Clearing issues Safe Accommodation receipt to Selling Clearing Participant.

Day	Time	Details
Delivery Day 1	12:30pm	Selling Clearing Participant submit tender documentation to SFE Clearing.
	4:00pm	Trading closes.
	5:00pm	Participants complete allocations and netdowns in OM Secur.
		Participants lodge Ending Position Confirmation form - Greasy Wool Futures Contract (PDF 15KB) with SFE Clearing.
Delivery Day 2, 3 & 4	7:00am	Buyer's invoices & summaries; Seller's advices and summaries available for collection from SFE Clearing.
	10:30am	Buying Clearing participants lodge invoiced amount to SFE Clearing.
	11:00am	SFE Clearing issues Safe Accommodation receipt to Buying Clearing participant.
	12:00pm	SFE Clearing releases settlement funds to Selling Clearing participant.
		SFE Clearing advises the Approved Warehouse of the Buyer's identity.
	12:30pm	Selling Clearing participant submits tender documentation* to SFE Clearing.
	4:00pm	Trading Closes.
	5:00pm	Participants complete allocations and netdowns in OM SECUR.
		Participants lodge Ending Position Confirmation form - Greasy Wool Futures Contract (PDF 15KB) with SFE Clearing.
Last Trading Day	7:00am	Buyer's invoices & summaries, Seller's advices and summaries available for collection from SFE Clearing.
	10:30am	Buying Clearing participants lodge invoiced amount to SFE Clearing.
	11:00am	SFE Clearing issues Safe Accommodation receipt to Buying Clearing participant.
	12:00pm	Trading Closes.
		SFE Clearing releases settlement funds to Selling Clearing participant.
		SFE Clearing advises the Approved Warehouse of the Buyer's identity.
	1:00pm	Participants complete allocations and netdowns in OM SECUR.
		Participants lodge Ending Position Confirmation form - Greasy Wool Futures Contract (PDF 15KB) with SFE Clearing.
	3:00pm	Selling Clearing Participant submits tender documentation* to SFE Clearing.
Settlement Day	7:00am	Buyer's invoices & summaries; Seller's advices and summaries available for collection from SFE Clearing.
	10:30am	Buying Clearing participants lodge invoiced amount to SFE Clearing.
	11:00am	SFE Clearing issues Safe Accommodation receipt to Buying Clearing participant.
	12:00pm	SFE Clearing releases settlement funds to Selling Clearing participant.
		SFE Clearing advises the Approved Warehouse of the Buyer's identity.

* Tender documentation refers to:

Delivery Notification Advice (PDF 15KB), and;
Original SFE Warehouse receipt; AWTA Test Certificate; AWTA Staple Certificate; AWEX Appraisal Certificate; or
Safe Accommodation receipt endorsed to SFE Clearing.

New Zealand Equity Options

NZ Equity Options are able to be exercised by a Participant holding a long position, on any Trading Day up to and including the Final Trading Day. If a Participant wished to request an option exercise, they must perform an Exercise Request in OM Secur.

If a Participant requests an exercise of a Put Option, the Buyer of the Put Option shall be the Seller of the Physical stock, and the Seller of the Put Option shall be the Buyer of the Physical stock.

If a Participant requests an exercise of a Call Option, the Buyer of the Call Option shall be the Buyer of the Physical stock, and the Seller of the Call Option shall be the Seller of the Physical stock.

All in-the-money positions on the Final Trading Day shall be exercised/assigned accordingly with the Delivery of Physical stock to occur on the Settlement Day, third business day following the Declaration Date.

Security transfers can only be completed by registered FASTER (New Zealand Exchange Limited’s Fully Automated Screen Trading and Electronic Registration) participants. Clearing Participants may appoint a FASTER participant(s) as Agent, to act on their behalf, if they are not one themselves.

Delivery Procedures Timetable

Day	Time	Details
T Any day of Trading (Nomination Day)	7:00pm	Participant lodges Exercise Request in OM Secur.
T Last Day of Trading (Nomination Day)	3:30pm	All netdowns to be complete. Final time for lodgement of Exercise Request.
T+1 Nomination Day + 1	5:00am	SFE Clearing provides confirmation to exercised and assigned Participants in Daily Registration Statement
	10:00am	Participants lodge Notice of Intention to Deliver – NZ Equity Option Contract with SFE Clearing.
T+2 Nomination Day + 2	7:00am	SFE Clearing to have provided Buyer and Seller advices to Clearing Participants.
T+3 Nomination Day + 3 (Settlement Day)	11:00am	Buyer of Physical stock to pay funds to SFE Clearing via NZ Austraclear
	11.00am	SFE Clearing to fax Transfer Authorisation form to Seller of Physical stock.
	1.00pm	Seller to have transferred Physical stock to Buyer in FASTER (NZX Settlement Facility)
	1.15pm	Buyer of Physical Stock lodge Delivery Status Report with SFE Clearing.
	1.30pm	SFE Clearing to pay Settlement funds to Seller of physical stock via NZ Austraclear.

Individual Share Futures Contract

All positions which are open at the expiry of deliverable Individual Share Futures Contracts will be settled via physical delivery of the underlying security. Settlement occurs on the business day immediately following the last trading day, with the transfer of securities taking place via the Australian Stock Exchange (Sydney) Limited's (ASX's), Clearing House Electronic Sub-Register System (CHESS), using the demand transfer (off-market) functionality. Security transfers can only be completed by registered CHESS participants. Clearing Participants may appoint a CHESS participant(s) as Agent, to act on their behalf, if they are not one themselves.