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TMI BlogPermission for trading in futures contracts and modification in contract specifications at exchange levelX X X X Extracts X X X X X X X X Extracts X X X X ..... at exchange level. This circular is beingissued to consolidate and update such norms prescribed for National Commodity Derivatives Exchanges by the erstwhile FMC. 3. Accordingly, the following are prescribed: a. Check-list of information/details to be submitted along with proposal for launch of new contract or/and for renewal of existing/earlier contracts All proposals of exchange for launch of new contract and/or for renewal of existing/earlier contracts shall be accompanied by complete information covering all the points delineated in the check-list appended at Annexure 1. The parameters / items listed in the check-list for compliance are illustrative and not exhaustive. Any additional relevant parameter/information as deemed necessary may also be furnished while sending proposal for contracts. b. Approval for futures contracts on continuous basis The Exchange wise list of contracts approved for continuous trading is placed at Annexure 2. Approval for continuous trading in futures contracts is contingent upon volume and open interest at the Exchange. Continuous approval for futures trading in the said contracts is subject to the following terms and condition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat there is no unhealthy speculative trading in the market, which may result in cornering or artificial rigging up or down of the prices by a particular member or group or class of members. ix. The list of contracts available for trading on continuous basis shall be reviewed by SEBI from time to time. c. Permission to allow modification in futures contract specifications at the exchange level To ensure that Exchanges are enabled to respond to the market requirements quickly, National Commodity Derivatives Exchanges are permitted to modify the futures contract specifications related to Ticker symbol, Basis, Maximum order size, Trading unit, Delivery unit, Quotation base value, Tick size, Delivery centers, additional delivery centers, issue related to Premium/Discount, Quality parameters and its relevant aspects such as Quantity variation and Tolerance limit in the futures contract specifications. The permission to modify the above parameters of the futures contract specifications is subject to the condition that Exchanges shall invariably inform the market participants and the regulator well in advance before introduction of any modification in contract specifications wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsumption figures, major exporting importing countries with figures l. Monthly price movement in futures market both domestic and international for last 3 years m. Prevailing spot prices in the domestic physical market in the last three years and immediate 3 preceding months prior to the application n. Which are the other exchanges where the proposed contract is already being traded and its/ their respective market share in terms of volumes percentage of trades (estimated)? o. Value Chain of the commodity p. Degree of standardisation q. Political sensitivity/price controls r. Whether commodity is under purview of Essential commodities act / APMC Act / The Food Control Regulation Act etc. s. Geographical coverage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age / delivery charges and cost in respect of failed deliveries, etc. 5. MARKET SURVEILLANCE AND RISK MANAGEMENT : a. Permitted price variation in a day b. Open position limits in respect of client, member and market as a whole c. Checks and balances for high frequency/ Algo trades d. Initial margin, M ‐o‐M margin, and conditions under which special / additional margins could be levied by Exchanges e. Settlement / trade guarantee f. Cost of failed payments / deliveries g. Staggered delivery system Additional Information required in case of proposal for renewal of existing/earlier contracts 6. THE TRACK RECORD OF TRADING IN THE CONTRACT LIKE :‐ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xure2 Exchange wise list of contracts approved for continuous trading Exchange Name Contracts approved for continuous trading Multi Commodity Exchange of India Ltd. Aluminium, Aluminium Mini, Brent Crude Oil, Cardamom, Copper, Copper Mini, Cotton, Crude Palm Oil, Crude Oil, Dhaniya, Gold, Gold Guinea, Gold Mini, Gold Petal, Gold Petal Delhi, Lead, Lead Mini, Mentha Oil, Natural Gas, Nickel, Nickel Mini, Silver, Silver1000, Silver Mini, Silver Micro, Zinc, Zinc Mini National Commodity Derivatives Exchange Ltd. Barley, Chilli, Copper Cathode, Cottonseed Oil Cake, Crude Oil, Crude Palm Oil, Dhaniya, Gold Hedge, Guar Gum, Guar Seed (2 MT), Guar Seed (10 MT), Jeera, V‐797 Kapas, Maize (Kharif), Maize (Rabi), Rape/Mustard Seed, Refined Soy Oil, Shankar Kapas, Soyabean,Steel Long, Sugar M, Turmeric, Wheat National Multi Commodity Exchange of India Ltd. Cardamom, Castor Seed, Coffee Rep Bulk, Isabgulseed, Copra, Pepper, Rape/Mustard Seed, Raw Jute, Rubber, Sacking, Soy Oil, Guar Seed - Circular - Trade Notice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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