Delivery, Exercise and Corporate Actions

Futures Physical Delivery Example


Example:

Trader A is holding a long position in December 2012 Corn Futures (ZC).
Trader B is holding a short position in the same contract.

Exchange Trading Class Contract Month Description Applicable to Cash/IRA Accounts Only Start of Close-Out Period 2 Long Futures Cutoff 3 Long Futures Liquidation Short Futures Cutoff 4 Short Futures Liquidation
ECBOT ZC 201212 CORN FUTURES NO 1 business day prior to cutoff 20121129
13:15 (CT)
20121129
9:30 (CT)
20121214
12:00 (CT)
20121214
9:30 (CT)

Trader A would have to close the long position by the end of the regular trading session on 2012/11/28 (one business day prior to the long futures cutoff date of 2012/11/29). Open long positions would be subject to liquidation beginning 2012/11/29 09:30 CST.

Trader B would have to close the short position by the end of the regular trading session on 20121213 (one business day prior to the short futures cutoff date of 2012/12/14). Open short positions would be subject to liquidation beginning 2012/12/14 at 09:30 CST.