NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED

Circular to all
Circular No.
Date
Subject

trading and clearing members of the Exchange

: NCDEX/TRADING-080/2014/192
: June 19, 2014
: Modification in contract specifications - Brent Crude Oil
(BRENTCRUDE) futures contract

Trading and Clearing Members are requested to note that the Exchange, as per the
Bye-laws, Rules and Regulations of the Exchange and with the approval of the
Forward Markets Commission, has modified the contract specification in the Brent
Crude Oil (SYMBOL: BRENTCRUDE) futures contract. The contracts expiring in the
months of July 2014, August 2014 and September 2014 would be available for
trading from June 20, 2014. Contracts for further expiries will be launched as per
the enclosed contract launch calendar.
The futures contract to be launched on June 20, 2014 shall be additionally governed
by the Product Note as is notified on the Exchange Website under the Tab
Products. Members and Participants are requested to kindly go through the same
and get acquainted with the product launched and its trading and related process put
in place by the Exchange.
Members and participants are requested to note that Brent Crude Oil futures contract
will be available for trading with modified contract specifications. The currency
exchange rate (which will be fixed for the entire tenure of the contract) to be used for
the contracts expiring in the month of July 2014, August 2014 and September 2014
are as follow;
Brent Crude Oil Contracts
July 2014
August 2014
September 2014

Currency Exchange rate (INR/USD)

60.4575
60.7200
61.0150

The above exchange rate will be used to arrive at the FSP of respective monthly
contract. For example, August contract will be settled as;
Brent Index published as on that day (i.e. expiry day of the contract on NCDEX) by
Intercontinental Exchange (ICE) for a similar corresponding contract expiring on ICE
X Rs. 60.7200.

1/6
Registered Office: 1st Floor, Akruti Corporate Park, Near G.E. Garden, LBS Road,
Kanjurmarg West, Mumbai 400 078, India. CIN No. U51909MH2003PLC140116
Phone: +91-22-6640 6789, Fax +91-22-6640 6899, Website: www.ncdex.com

Summary of modifications in contract specifications for Brent Crude Oil futures

contracts expiring in July 2014 and thereafter is given in Annexure I. Modified
contract specifications applicable for Brent Crude Oil futures contracts expiring in July
2014 and thereafter are given in Annexure II.
The contracts and the transactions therein will be subject to Rules, Bye Laws and
Regulations of the Exchange and circulars issued by the Exchange as well as
directives issued from time to time by the Forward Markets Commission. It is clarified
that it is the sole obligation and responsibility of the Members and market
participants to ensure that apart from the approved quality standards stipulated by
the Exchange, the commodity Brent Crude Oil deposited / traded / delivered through
the Approved Storage Facility/Warehouse is in due compliance with all the applicable
laws/registrations/licenses as may be required while dealing in the commodity Brent
Crude Oil and as laid down by various statutory authorities like Ministry of Petroleum
& Natural Gas, Import/Export Regulations, Weight & Measures, Fire Safety norms,
Environmental norms etc., as also other State/Central laws and authorities issuing
such regulations in this behalf from time to time, including but not limited to
compliance of provisions and rates relating to Sales Tax, Value Added Tax(VAT), LBT,
Octroi, Excise duty, Stamp duty, Service tax, etc. as applicable from time to time on
the underlying commodity of Brent Crude Oil contract offered for deposit / trading /
delivery and the Exchange shall not be responsible or liable on account of any noncompliance

thereof.

For and on behalf of

National Commodity & Derivatives Exchange Limited

Vivek Jalan
Senior Vice President Business
____________________________________________________________________
For further information / clarifications, please contact
1 Ms. Suchitra Mane - Phone no: 022- 6640 6079
2 Customer Service Group on phone: 022 6640 6613 -15
3 Customer Service Group by e-mail to : askus@ncdex.com

2/6
Registered Office: 1st Floor, Akruti Corporate Park, Near G.E. Garden, LBS Road,
Kanjurmarg West, Mumbai 400 078, India. CIN No. U51909MH2003PLC140116
Phone: +91-22-6640 6789, Fax +91-22-6640 6899, Website: www.ncdex.com

Annexure I
Summary of Modifications in contract specifications Brent Crude Oil
futures contracts

Contract
Specifications

Final Settlement
Price

Modified Contract Specifications

The Final Settlement Price (FSP) in Indian Rupees (INR) will
be determined by the Exchange on maturity of the contract.
The FSP will be the value of Brent Index published by
Intercontinental Exchange (ICE) for a similar corresponding
contract expiring on ICE.
The exchange rate to be used as the conversion factor shall
be the closing price of benchmark domestic currency
derivative exchange on the preceding business day of the
launch day and this USD-INR exchange rate will be
applicable during entire tenure of the contract till the date of
expiry.

3/6
Registered Office: 1st Floor, Akruti Corporate Park, Near G.E. Garden, LBS Road,
Kanjurmarg West, Mumbai 400 078, India. CIN No. U51909MH2003PLC140116
Phone: +91-22-6640 6789, Fax +91-22-6640 6899, Website: www.ncdex.com

Annexure II
Modified Contract Specifications - Brent Crude Oil futures contract
(Applicable for contracts expiring in July 2014 and thereafter)
Type of Contract

Futures Contract

Name of Commodity

Brent Crude Oil

Ticker symbol

BRENTCRUDE

Trading System

NCDEX Trading System

Unit of trading

100 Barrels

Maximum order size

5000 Barrels

Delivery unit

50,000 Barrels

Quotation/base value

Rs per barrel*

Basis

Sullom Voe, Shetland Islands, United Kingdom

exclusive of all levies and taxes.

Tick size

Re 1/-

Quality specification

Crude Type

API Gravity

Sulphur Content

Brent

38.5 degrees

0.36%

Crude Type API Gravity

Also Deliverable

Sulphur Content

Forties

41.5-42.5 degrees 0.25-0.3%

Osberg

35.9 degrees

0.32%

Quantity variation

+/- 1% by volume

Delivery center

Mumbai Port / Jawaharlal Nehru Port Trust (JNPT).

The Buyer will be responsible for the freight cost,
insurance, import duty and all other taxes & levies
on actual basis. Freight and insurance will be paid
on actual basis on production of satisfactory
documentary evidence from the seller.

Hours of trading

As per directions of the Forward Markets

Commission from time to time, currently Mondays through Fridays: 10:00 AM to 11:30
PM
10.00 AM to 11:55 PM (during the US day light
saving period)
On Expiry Date at 11:30 PM / 11:55 PM*
All Timings are as per Indian Standard Timings
(IST)
*during US day light saving period

Delivery specification

The buyer and seller shall give intentions of

taking/giving delivery through the delivery request
window at least three trading days prior to the
expiry of the contracts and such intentions can be
given during 3 days which would be notified

4/6
Registered Office: 1st Floor, Akruti Corporate Park, Near G.E. Garden, LBS Road,
Kanjurmarg West, Mumbai 400 078, India. CIN No. U51909MH2003PLC140116
Phone: +91-22-6640 6789, Fax +91-22-6640 6899, Website: www.ncdex.com

separately. This will be matched by the Exchange

for physical delivery as per the process put in place
by the Exchange.
Opening of contracts

As per launch calendar

Due date/Expiry date

As per launch calendar

Closing of contract

All open positions for which delivery intentions have

not been received or for which delivery intentions
have been rendered but remain unmatched for
want of counterparty to settle delivery will be cash
settled at the Final Settlement Price on the expiry
of the contract.

No. of active contracts

As per launch calendar

Price limit

Base daily price fluctuation limit is (+/-) 4%. If the

trade hits the prescribed daily price limit, the price
limits will be relaxed up to (+/-) 6% without any
break/ cooling off period in the trade. In case the
daily price limit of (+/-) 6% is breached, then after
a cooling off period of 15 minutes, the daily price
limit will be further relaxed up to (+/-) 9%. Trade
will be allowed during the cooling off period within
the
price
band
of
(+/-)
6%.
In case of price movement in International markets
which is more than the maximum daily price limit
(currently 9%), the same may be further relaxed in
steps of 3%.
Member: 20,00,000 barrels or 15% of market
wide open interest, whichever is higher.
Client: 4,00,000 barrels.

Position limits

Special Margins

Final Settlement Price

The above limits will not apply to bona fide

hedgers. For bona fide hedgers, the Exchange will,
on a case to case basis, decide the hedge limits.
Please refer to Circular No. NCDEX/TRADING100/2005/219 dated October 20, 2005.
In case of unidirectional price movement/ increased
volatility, an additional/ special margin at such
other percentage, as deemed fit by the
Regulator/Exchange, may be imposed on the buy
and the sell side or on either of the buy or sell sides
in respect of all outstanding positions. Reduction/
removal of such additional/ special margins shall be
at the discretion of the Regulator/Exchange.
The Final Settlement Price (FSP) in Indian
Rupees (INR) will be determined by the
Exchange on maturity of the contract. The FSP
will be the value of Brent Index published by
Intercontinental Exchange (ICE) for a similar
corresponding contract expiring on ICE. The
exchange rate to be used as the conversion

5/6
Registered Office: 1st Floor, Akruti Corporate Park, Near G.E. Garden, LBS Road,
Kanjurmarg West, Mumbai 400 078, India. CIN No. U51909MH2003PLC140116
Phone: +91-22-6640 6789, Fax +91-22-6640 6899, Website: www.ncdex.com

factor shall be the closing price of benchmark

domestic currency derivative exchange on the
preceding business day of the launch day and
this USD-INR exchange rate will be applicable
during the entire tenure of the contract till the
date of expiry.
Minimum Initial Margin

5%

Delivery logic

Intention matching

* 1 Barrel = 42 US gallons = 158.98 liters

Launch calendar for Brent Crude Oil

Contract Launch Date

Contract Expiry Date

June 20, 2014

July 16, 2014

August 14, 2014
September 15, 2014

July 17, 2014

October 16, 2014

August 18, 2014

November 13, 2014

September 16, 2014

December 16, 2014

6/6
Registered Office: 1st Floor, Akruti Corporate Park, Near G.E. Garden, LBS Road,
Kanjurmarg West, Mumbai 400 078, India. CIN No. U51909MH2003PLC140116
Phone: +91-22-6640 6789, Fax +91-22-6640 6899, Website: www.ncdex.com