Subject Launch of Commodities and Contracts Brent Crude Oil by gaa11000

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									NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED
Circular to all Trading and Clearing Members of the Exchange
Circular No.: NCDEX/TRADING-078/2005/183
Date: September 13, 2005
Subject: Launch of Commodities and Contracts: Brent Crude Oil Futures Contract
_____________________________________________________________________________

We are pleased to announce that trading in Brent Crude Oil Futures Contract on the
Exchange will commence from Thursday, September 15, 2005. The details of this
new contract are given below:


 Sr. No.      Commodity               Symbol                         Basis
    1.   Brent Crude Oil         BRENTCRUDE             Sullom Voe, Shetland Islands
                                                        United Kingdom, exclusive of
                                                        all levies and taxes



Initially one contract will be available for trading expiring on December 15, 2005.
New contracts will be introduced as per calendar given in Exhibit 1.
Contract name: Brent Crude Oil

Sr. Instrument  Asset      Expiry  Market             Tick    Delivery
                                           Price Unit
No.    Type    Symbol       Date    Lot               Size      Lot
                         TH
1.   FUTCOM BRENTCRUDE 15 Dec, 2005 100    Rs/Barrel Re. 0.50 50,000
                                   Barrels                    Barrels

The detailed contract specifications are attached as an Annexure to this Circular.
For details of deliveries and warehousing kindly refer to the Brent Crude Oil Product
Note.
The contracts and the transactions therein will be subject to Rules, Bye Laws,
Regulations of the Exchange and circulars issued by the Exchange as well as
directives, if any, of the Forward Markets Commission from time to time.

For and on behalf of
National Commodity & Derivatives Exchange Limited



Narendra Gupta
Chief Business Officer
For further information / clarifications, please contact
1. Mr. Rahul Banerjee – Phone No.(022) 5640 6697
2. Mr. Arvind Pal Singh - Phone No. (022) 5640 6712
3. Mr. Vivek Oberoi – Phone No. (022) 5640 6623
4. Helpdesk by E-mail to: askus@ncdex.com
Annexure

                        Brent Crude Oil Contract Specification

Type of contract                     Futures Contract Specifications
Name of commodity                    Brent Crude Oil
Ticker symbol                        BRENTCRUDE
Trading system                       NCDEX Trading System
Unit of trading                      100 barrels
Delivery unit                        50,000 barrels
Quotation/base value                 Rs per barrel*
                                     Sullom Voe, Shetland Islands, United Kingdom
Basis
                                     exclusive of all levies and taxes.
Tick size                            Re 0.50
                                      Crude           API Gravity      Sulphur
Quality specification                 Type                             Content
                                      Brent           38.5 degrees     0.36%
                                      Crude           API Gravity      Sulphur
                                      Type                             Content
Also Deliverable                                      41.5-42.5
                                      Forties                          0.25-0.3%
                                                      degrees
                                      Osberg          35.9 degrees     0.32%
Quantity variation                   +/- 1% by volume
                                     Mumbai Port / Jawaharlal Nehru Port Trust
                                     (JNPT)

                                     The Buyer will be responsible for the freight cost,
Delivery center
                                     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.
                                     As per directions of the Forward Markets
                                     Commission from time to time, currently (with
Trading hours                        effect from May 16, 2005) –

                                     Mondays through Fridays: 10:00 a.m. to 11:30
                                      p.m.

                                      Saturdays: 10:00 a.m. to 2:00 p.m.

                                      The Exchange may vary the above timing with due
                                      notice.

                                      The buyers and seller shall give intentions of
                                      delivery / receipt through the delivery request
Delivery specification                window during last three trading days including
                                      the day of expiry of the contract. This will be
                                      matched by the Exchange for physical delivery.

                                      The first contract would be launched on September
                                      15, 2005 as per the approval of the Forward
Opening of contracts
                                      Markets Commission. New contracts would open
                                      as per schedule given in Exhibit 1.

Due date/Expiry date                  As per Exhibit 1

                                      All open positions for which delivery intentions
                                      have not been received or for which delivery
Closing of Contract                   intentions have been rendered but remain
                                      unmatched for want of counterparty to settle
                                      delivery, will be cash settled at Final settlement
                                      Price on the expiry of the contract.


No. of active contracts               Three consecutive months running concurrently

Price limit                           Limit of 6 %

                                      6,00,000 barrels for Member
Position limits
                                      1,50,000 barrels for Client
                                      Special margin of 5% of the value of the contract
                                      will be applied whenever the rise or fall in price
                                      from the first day’s closing price is 20%.This is
                                      payable by buyer or seller depending on whether
Special Margin
                                      prices rise or fall respectively. The margins shall
                                      stay in force so long as price stays beyond the 20%
                                      limit and will be withdrawn as soon as the price is
                                      within the 20% band.

Quality Allowance (for Delivery)      No variation allowed

*1 barrel= 42 US gallons =158.98 litres
Exhibit 1 - Schedule of the Opening Date and Expiry Date of Trading on Brent Crude
Oil Futures contracts between December 2005 and March 2006 (Schedule will be
updated in January 2006)

Name of            Opening Date                   Expiry Date
Contract
December'05        15 September, 05                15 December, 05
January'06         15 October, 05                  16 January, 06
Feburary'06        16 November, 05                 13 February, 06
March'06           16 December, 05                 16 March, 06

								
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