Mini Polypropylene Futures
Price risk exists at all stages where materials are bought and sold in an industrial supply chain.The risk occurs from the timing difference between production and selling of the products. The risk is greater when the supply chain is not fully integrated. Price volatility is a significant issue for the plastics industry and it exposes all participants to risk.
One of the principal functions of the DGCX Plastics contract is to allow participants in the petrochemicals to discover prices which can be used as a reference or pricing for physical transactions. DGCX prices are the result of trading on the exchange platform, conducted and channeled through the DGCX member firms, and therefore representative of real deals between buyers and sellers of plastics. Physical delivery helps ensure price convergence between the DGCX futures market and the physical market.
- Compulsory physical delivery contract with transparent pricing
- Cash settled mini contract for financial participants
- Settle prices with physical delivered contract
- 100% intercommodity spread credit benefits with ratio of 1:5 (PP vs Mini)
- DGCX provides a transparent market for the trading of Polypropylene futures contracts.
- All participants in the plastics supply chain, including producers, traders, convertors and end users will be able to hedge their polymer price risk.
- Physical delivery will ensure price convergence between the futures market and the physical market
Contract Parameters Contract Symbol DPPMM Underlying Polypropylene (PP) Contract Size 5 tonnes per contract Notional Contract Value USD 5 X Polypropylene (PP) price quoted Trading Currency USD Settlement Currency USD Price Quote USD per tonne Tick Size USD 1 Tick Value USD 5 Settlement Basis Cash Only Settlement Contract Final Cash Settlement Price The Final Settlement Price Methodology shall be derived from the conditions listed below on the underlying 25MT contract: (a) Value Weighted Average Price (VWAP) of all trades executed in last 10 minutes of the Last Trading Day (b) If no trades have been executed in the last 10 minutes, the VWAP of last 15 trades executed during the Last Trading Day provided 15 trades are executed (c) If 15 trades have not occurred, the VWAP of all trades executed during the Last Trading Day (d) Where there are no trades executed during Last Trading Day, the price midway between outright bids and offers during the last 10 minute period Price Basis In warehouse (INWH), duty unpaid at DGCX Approved Warehouse delivery at seller's option Quality Specification General Purpose Fibre (Raffia) extrusion graderaffia Last Day of Trading Three Trading Days prior to the Delivery Month Trading Days Monday through to Friday Trading Hours 07:00-15:00 Hours UAE time (GMT+4) (for plastics) Trading Months Up to 12 calendar months at any time New Contract Listing Business day immediately following the last trading day Max Order Size 200 contracts Maximum Open Position Limit As determined by the Exchange from time to time EFP / EFS / Block Trades EFS, EFP, Block trade facilities available with minimum permitted block size of 50 lots Time Limit for EFP / EFS / Block Trade Registration Up to 5 minutes after cessation of trading on any trading day Initial Margin based on SPAN USD 200 per lot (subject to change) Extra Margin At times of high volatility, an extra margin, as deemed fit by the Exchange, may be charged. Calendar Spread Margin 100% benefit is offered on calendar spread positions Daily Price Movement limit No Limits - Note 1* Tender Margin 10 times of the Initial Margin and is applicable from the first day of the Delivery month. Note 1*: There will be no limits on intra-day price movements, however to restrict data-entry errors the system will not allow entry of orders having prices higher or lower than US$50 as compared to the Previous Close Price. Exchange shall relax the intra-day price range for the prices of the contract approaching the US$50 limit Delivery Mechansim Details Delivery Type & Minimum Delivery Unit Compulsory Delivery Delivery Instrument Warrant Notice Day Last Day of Trading Delivery Notices At the Notice Day, Sellers must submit Delivery Notice, indicating: Delivery Day Two Business Days after the Notice Day Documents A copy of the producer’s Certificate of Analysis for every production batch making up the lot, duly evidencing that each lot is fully traceable, must accompany every lot delivered into a DGCX Approved Warehouse. The Certificate of Analysis must state the producer, grade, batch number and test results for the batch Delivery Tolerance Weight tolerance of +/-0.8% on standard Delivery Unit of 24.75 tonnes Packaging Each delivery unit shall consist of 990 X 25 kg bags comprising 18 pallets each carrying 55 such bags stacked symmetrically in 11 layers of 5 bags per layer Production Batches Each Delivery Unit shall consist of no more than 2 production batches Polymer Age and Delivery Time PP must have been produced no more than 17 months prior to the Delivery Day and arrived at the Approved Warehouse for no longer than 6 months after production date Test Method Values ISO 1133 2.5-4.0 ISO 527 29 Minimum 21CFR 177.1520 (c) 1.1 Compliant EU Directive 2002/72/EC and its amendments Compliant
Product Contract Last trading date Expiry date Tender start date Tender end date Delivery start date Delivery end date DPPMM DPPMM-20170127 27-Jan-2017 27-Jan-2017 30-Jan-2017 30-Jan-2017 30-Jan-2017 30-Jan-2017 DPPMM DPPMM-20170224 24-Feb-2017 24-Feb-2017 27-Feb-2017 27-Feb-2017 27-Feb-2017 27-Feb-2017 DPPMM DPPMM-20170329 29-Mar-2017 29-Mar-2017 30-Mar-2017 30-Mar-2017 30-Mar-2017 30-Mar-2017 DPPMM DPPMM-20170426 26-Apr-2017 26-Apr-2017 27-Apr-2017 27-Apr-2017 27-Apr-2017 27-Apr-2017 DPPMM DPPMM-20170529 29-May-2017 29-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017 DPPMM DPPMM-20170628 28-Jun-2017 28-Jun-2017 29-Jun-2017 29-Jun-2017 29-Jun-2017 29-Jun-2017 DPPMM DPPMM-20170727 27-Jul-2017 27-Jul-2017 28-Jul-2017 28-Jul-2017 28-Jul-2017 28-Jul-2017 DPPMM DPPMM-20170829 29-Aug-2017 29-Aug-2017 30-Aug-2017 30-Aug-2017 30-Aug-2017 30-Aug-2017 DPPMM DPPMM-20170927 27-Sep-2017 27-Sep-2017 28-Sep-2017 28-Sep-2017 28-Sep-2017 28-Sep-2017 DPPMM DPPMM-20171027 27-Oct-2017 27-Oct-2017 30-Oct-2017 30-Oct-2017 30-Oct-2017 30-Oct-2017 DPPMM DPPMM-20171128 28-Nov-2017 28-Nov-2017 29-Nov-2017 29-Nov-2017 29-Nov-2017 29-Nov-2017 DPPMM DPPMM-20171227 27-Dec-2017 27-Dec-2017 28-Dec-2017 28-Dec-2017 28-Dec-2017 28-Dec-2017