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.

    • 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.
  • ContractParameters
    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

  • ProductContract IdentifierLast Trading DateExpiry DateTender Start DateTender End DateDelivery Start DateDelivery End Date
    DPPMM DPPMM-20180129 29-Jan-2018 29-Jan-2018 30-Jan-2018 30-Jan-2018 30-Jan-2018 30-Jan-2018
    DPPMM DPPMM-20180226 26-Feb-2018 26-Feb-2018 27-Feb-2018 27-Feb-2018 27-Feb-2018 27-Feb-2018
    DPPMM DPPMM-20180327 27-Mar-2018 27-Mar-2018 28-Mar-2018 28-Mar-2018 28-Mar-2018 28-Mar-2018
    DPPMM DPPMM-20180426 26-Apr-2018 26-Apr-2018 27-Apr-2018 27-Apr-2018 27-Apr-2018 27-Apr-2018
    DPPMM DPPMM-20180529 29-May-2018 29-May-2018 30-May-2018 30-May-2018 30-May-2018 30-May-2018
    DPPMM DPPMM-20180627 27-Jun-2018 27-Jun-2018 28-Jun-2018 28-Jun-2018 28-Jun-2018 28-Jun-2018
    DPPMM DPPMM-20180727 27-Jul-2018 27-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018
    DPPMM DPPMM-20180829 29-Aug-2018 29-Aug-2018 30-Aug-2018 30-Aug-2018 30-Aug-2018 30-Aug-2018
    DPPMM DPPMM-20180926 26-Sep-2018 26-Sep-2018 27-Sep-2018 27-Sep-2018 27-Sep-2018 27-Sep-2018
    DPPMM DPPMM-20181029 29-Oct-2018 29-Oct-2018 30-Oct-2018 30-Oct-2018 30-Oct-2018 30-Oct-2018
    DPPMM DPPMM-20181128 28-Nov-2018 28-Nov-2018 29-Nov-2018 29-Nov-2018 29-Nov-2018 29-Nov-2018
    DPPMM DPPMM-20181227 27-Dec-2018 27-Dec-2018 28-Dec-2018 28-Dec-2018 28-Dec-2018 28-Dec-2018

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