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Deliverable futures contracts

There are a number of deliverable futures contracts traded on both ASX and ASX 24. 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. For further information on the applicable delivery process please click on the market in which you are interested.

  1. IR - 90 Day Bank Accepted Bill Futures
  2. ASX Grain Futures
  3. ASX Wool Futures

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
  • 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)
10:00am Expiry Settlement Price is determined
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 to ASX Clear (Futures).
5:00pm Seller or agent to have nominated within Austraclear BABs, EBAs, NCDs or ECDs to be transferred on delivery day.
7:00am ASX Clear (Futures) 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 ASX Clear (Futures) via Austraclear.
11:00am Buyer to have checked details of BABs, EBAs, NCDs or ECDs are in accordance with those advised by ASX Clear (Futures). Buyer confirm acceptance for irrevocable settlement using Austraclear.
Buyer to notify ASX Clear (Futures) 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 ASX Clear (Futures) 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.

ASX Grain Futures

Guides for ASX Clear (Futures) Clearing Participants

Further procedure information written for clients (sellers and buyers) can be found here.

The ASX Grain Futures Delivery Period begins on the second business day of the settlement month and ends at 3pm on the third Thursday of the settlement month.

Within the delivery period the seller must deliver grain that has been lodged with an Approved Bulk Handler. The grain must be in multiples of 20 tonnes.

Grain lodgements must be aged at least two business days before the grain can be tendered for delivery. Grain that is not lodged at least two days prior to the Final Trading Day will not qualify for the current delivery period.

ASX Clear (Futures) (ASXCF) verifies the grade, season, and delivery location as per the ASX 24 Contract Specifications. The requirements and locations that constitute an acceptable delivery are further explained here. Once ASXCF has verified that the lodgement satisfies the Contract Specification, the Title Transfer is approved through the applicable Bulk Handler title transfer system.

Throughout the delivery period the Clearing Participant must complete allocations and netdowns in Secur prior to 5:00pm. Additionally Clearing Participant’s must confirm their ending positions by submitting an Ending Position Confirmation form by 5:00pm with ASX Clear (Futures).

The Seller may elect to deliver grain by submitting a Tender Request form prior to 12pm during the delivery period and 3pm on the Final Trading Day.

The delivery(s) are randomly assigned to Buying Clearing Participants with open positions at 5pm on each day of the delivery period.

Both Buying and Selling Clearing Participants will receive details of the delivery by 5:30pm on the day of the delivery.

The Buying Clearing Participant is required to pay ASX Clear (Futures) the calculated settlement amount on the Settlement day (Delivery day + 1) prior to 10:30am. Settlement funds are then remitted to the Selling Clearing Participant after 12pm.

The Holding Record of the Buying Clearing Participant is updated after 12:00pm on the Settlement Day (Delivery day + 1) with the deatails of the Grain received. The Buying Participant's Holding Activity Report and Holdings Listing Report will display the newly acquired grain.

Settlement Price Adjustment for Delivery

The Settlement Price of each grain contract is adjusted for Bulk Handler receival fees and shrinkage and the Grain Trade Australia (GTA) Location Differentials as per the GTA Location Differentials table.

The Wheat Settlement Price also includes quality adjustments for protein content based on the grower receival stack averages (NSW Wheat) or the average quality report by CBH nomination site (WA Wheat).

The Canola Settlement Price also includes quality adjustments for oil content and admixture based on grower receival stack average data.

Tender Advice examples that illustrate how the ASX Settlement Price is adjusted at delivery can be .

Withdrawing grain holdings from ASX Clear (Futures)

Following instruction from the client, the buyer's Clearing Participant submits to ASXCF the Withdrawal Advice form. Submission Deadline is 2pm. ASXCF trasnfers the grain holding being withdrawn to the buyer's nominated account within 24 hours of the applicable submission deadline. Further information concerning the withdrawal process can be found here.

Lodge Grain with the Bulk Handler (optional)
Day Time Details
Any Business Day up until two days prior to Last Trading Day Prior to 2:00pm Client transfers grain to the ASX Clear (Futures) account with the Bulk Handler. Client includes Participant mnemonic and client account on transfer.
Bulk Handler notifies ASX Clear (Futures) of the grain stock lodgement.
ASX Clear (Futures) checks lodgement details and enters details into the ASX Delivery Depository. The lodged grain will appear on the Clearing Participant’s Holding Activity report.

 

Delivery Procedures Timetable
Day Time Details
Delivery Day 1 12:00pm Selling Clearing Participant submits tender documentation to ASX Clear (Futures).
4:00pm Trading Closes.
5:00pm Participants complete allocations and netdowns in OM Secur.
Participants lodge Ending Position Confirmation form with ASX Clear (Futures).
5:30pm Buyer’s and Seller’s Tender Advice available in OM Secur.
7:30pm Buyer’s and Seller’s Summary available in OM Secur.

Delivery Day 2 - Delivery Day before Final Trading Day 10:30am Buying Clearing Participant to pay ASX Clear (Futures) SFEC in Austraclear the amount as specified on the Buyers Summary.
12:00pm ASX Clear (Futures) to release Sellers funds in Austraclear.

12:00pm Selling Clearing Participant submits tender documentation to ASX Clear (Futures).
4:00pm Trading Closes
5:00pm Participants complete allocations and netdowns in OM Secur.
Participants lodge Ending Position Confirmation form with ASX Clear (Futures).
5:30pm Buyer’s and Seller’s Tender Advice available in OM Secur.
7:30pm Buyer’s and Seller’s Summary available in OM Secur.

Final Trading Day 10:30am Buying Clearing Participant to pay ASX Clear (Futures) SFEC in Austraclear the amount as specified on the Buyers Summary.
12:00pm ASX Clear (Futures) to release Sellers funds in Austraclear.
12:00pm Trading Ceases
3:00pm Selling Clearing Participant submits tender documentation to ASX Clear (Futures).
5:00pm Participants complete allocations and netdowns in OM Secur.
Participants lodge Ending Position Confirmation form with ASX Clear (Futures).
5:30pm Buyer’s and Seller’s Tender Advice available in OM Secur.
7:30pm Buyer’s and Seller’s Summary available in OM Secur.

Final Settlement Day 10:30am Buying Clearing Participant to pay ASX Clear (Futures) SFEC in Austraclear the amount as specified on the Buyers Summary.
12:00pm ASX Clear (Futures) SFEC to release Sellers funds in Austraclear.

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