NMCE changes due date rate to three days

The National Multi-Commodity Exchange (NMCE) has changed the "due date" rate from five days to three days effective September 2007 contracts across all commodities traded on its platform.

The platform facilitates trading in approximately 55 commodities, and some of them are settled on the basis of average poled price of the previous five working days of the contract expiry date.

"Today, some commodities are settled on the average price of one day while others are settled on three and five days poling. Now, the exchange must have obtained FMC's permission on specific request," an industry source said.

An exchange release said that the 'due date' rate would be derived by averaging out the last three days' spot prices which fall in the delivery month at the main centre specified in the contract design, and at other delivery centres specified by the exchange. The due date rate in certain commodities at NMCE is derived for the last five days prior to the maturity date.

NMCE has also started an additional delivery centre for the Nizamabad variety of turmeric at 7 per cent discount, with certain changes in quality parameters in the Erode basis variety of turmeric. NMCE had introduced Erode variety of turmeric for futures trading in Erode last June and then the Nizamabad variety.