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Click Here - Contract Specifications for Robusta Cherry AB Coffee
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Futures Contract Specifications. Updated as on 03 September 2007.
Type of Contract Futures Contract Specifications
Name of Commodity Robusta Cherry AB Coffee
Ticker symbol COFFEERC
Trading System NCDEX Trading System
Basis Ex-warehouse Kushalnagar (Karnataka) exclusive of all
taxes
Unit of trading 2 MT
Delivery unit 2 MT deliverable in sound and new jute bags containing net
coffee of 60 kg
Quotation/base value Rs/Kilogram
Tick size 10 paise
Quality specification Robusta Cherry AB Coffee specifications:

Parameter Basis Max/Min Permissible limits
Moisture 9% to 12% 9% min.,
13% max.*
Retention on Screen 15 (screen with round holes of 6 mm) by weight 90% and above 90% min.
Passage through screen 14 (screen with round holes of 5.5 mm) by weight 1.5% and below 1.5% max.
Extraneous matter by weight 0% 0.2% max.*
Black cotyledon (full Black) beans by weight 0% 0.2% max.*
Triage (round small beans, spotted beans, Elephant beans, Pales, Dried and Shriveled Beans, broken beans) by weight 0% 3% max.
Pea Berry by weight 0% to 2% 5% max.*
Insect damaged beans by weight 0% 2% max.*
Brown Beans and Partially Black Beans by weight 0% 2.5% max.*


*See premium and discount
Quantity variation +/- 5 %
Delivery center Kushalnagar (Karnataka) up to the radius of 50 kms from the municipal limits)
Additional delivery centres Delivery shall also be acceptable at Hassan (Karnataka), Chikmangalur (Karnataka) and Kalpetta (Kerala) up to the radius of 50 kms from the municipal limits of the respective centers at par unless otherwise notified by the Exchange before the launch of the respective contract month
Hours of Trading As per directions of the Forward Markets Commission from time to time.
Currently,

Mondays through Fridays:
10:00 a.m. to 11:30 p.m.
10:00 a.m. to 11:55 p.m. (during US day light saving period)
Saturdays: 10:00 a.m. to 2:00 p.m.

The Exchange may vary the above timing with due notice
Tender Period and Pay-in and Pay-out Tender Date -T
Tender Period:
Tender period would be during trading hours of 10 trading days, excluding Saturday, before the expiry of the contract including the day of expiry of the contract.

Pay-in and Pay-out for settlement through physical delivery: on a T+7 basis. If the Tender Date is T then, payin and pay-out would happen on T + 7 day. If such a T + 7 day happens to be a Saturday, a Sunday or a holiday at the Exchange, Clearing Banks or any of the Service Providers,
Pay-in and Pay-out would be effected on the next working day.

Pay-in and Pay-out for cash-settlement on expiry of the contract: on a E+1 basis. If the Expiry Date is E then, Pay-in and Pay-out would happen on E+1 day. If such a E+1 day happens to be a Saturday, a Sunday or a holiday at the Exchange, clearing Banks, Pay-in and Pay-out would
be effected on the next working day.

Pay-in and pay-out schedule will be declared by the exchange from time to time
Due date/Expiry of contract 20th day of the delivery month
If 20th day happens to be a Saturday, Sunday or Holiday, then the due date shall be the immediately preceding trading day of the Exchange

The Settlement of the contract would be by a staggered system where settlement through physical delivery tendered on T day would happen on the T+7th day and final settlement of the contract would happen on E+7 day. Corresponding to each delivery The supplemental settlement shall also happen on T+7 days and the settlement for taxes shall happen on T+9 days.
Delivery logic Compulsory delivery
Delivery Specification Upon expiry of the contract all outstanding positions will result in delivery. A penalty of minimum 5% (of final settlement price) would be imposed on both longs and shorts if they fail to meet their delivery obligations. The exchange will have right to change the penalty structure

During the Tender period, if any delivery is tendered by seller, the corresponding buyer having open position and matched as per process put in place by the Exchange, shall be bound to settle by taking delivery on T + 7 day from the delivery centre where the seller has delivered same.
Closing of contract Clearing and settlement of contracts will commence with the commencement of Tender Period by compulsory delivery of each open position tendered by the seller on T +7 to the corresponding buyer matched by the process put in place by the Exchange.

On the expiry of the contract, all the outstanding positions shall be settled by physical delivery
Opening of contract Trading for the contracts expiring in the month of January 2008, March 2008, May 2008, July 2008 and September 2008 will open on 10th September 2007

Trading for subsequent contracts will open on the 10th day of month of the latest expiring contract. If the 10th day happens to be a non-trading day or Saturday the contracts would open on the next trading day
No of active contracts Contracts expiring in the month of January, March, May, July, September will be available for trading.
Price band Daily price fluctuation limit is (+/-) 4%. If the trade hits the prescribed daily price limit there will be a cooling off period for 15 minutes. Trade will be allowed during this cooling off period within the price band. Thereafter the price band would be raised by another 50% of the existing limit i.e.(+/-) 2% and trade will be resumed. If the price hits the revised price band (6%) again during the day, trade will
only be allowed within the revised price band. No trade/order shall be permitted during the day beyond the revised limit of (+/-) 6%
Position limits Member level limit: 11250 MT or 15% of market wide open position which ever is higher
Client: overall 3750 MT
The above limits will not apply to bona fide hedgers.

Following limit will apply in the near month:
Member level limit: 2250 MT
Client level: 750 MT
Premium/Discounts a)  Moisture content of 12.01% to 13% shall be discounted as under:
Moisture content Discount on weight of coffee
12.01% to 12.50% 0.5%
12.51% to 13% 1%


b)  Extraneous Matter content upto 0.2% by weight shall be discounted as under
Extraneous matter Discount on weight of coffee
0.01% to 0.1% 0.1%
0.11% to 0.2% 0.2%


c )  Pea Berry content of 2.01% to 5% by weight shall be
      discounted at Rs. 2 per kg as under:
Actual content of Pea Berry Discounted content of Pea Berry Reduction in the value
of coffee
2.01% to 3% 1% Rs. 2 multiplied by the discounted content of Pea Berry by weight in Kilograms
3.01% to 4% 2%
4.01% to 5% 3%


d )  Brown Beans and Partially Black Beans content up to 2.5% by weight shall be discounted at Rs. 4 per kg as under:
Actual content of Brown Beans/Partially Black Beans Discounted content of Brown/Partially Black Beans Reduction in the value of coffee
0.01% to 1% 1% Rs. 4 multiplied by the discounted content of Brown Beans/Partially Black Beans by weight in Kilograms
1.01% to 2% 2%
2.01% to 2.5% 2.5%


e )  Black Cotyledons (full black) Beans content up to 0.2% by weight shall at a discounted at Rs. 5 per kg as under:
Actual content of Full Black Beans Discounted content of Full Black Beans Reduction in the value of coffee
0.01% to 0.1% 0.1% Rs. 5 multiplied by the discounted content of Full Black Beans by weight in Kilograms
0.11% to 0.2% 0.2%


f )  Coffee with insect damaged beans will be discounted at Rs 2 Per Kg of coffee delivered. Further discount of Rs. 4 per kg of insect damaged beans shall be applied as under:
Actual content of Insect Damaged Beans Discounted content of Insect Damaged Beans Reduction in the value of coffee
0.01% to 1% 1% Rs. 4 multiplied by the discounted content of Insect Damaged Beans by weight in Kilograms
1.01% to 2% 2%


Special margins In case of additional volatility, a special margin at such other percentage, as deemed fit, will be imposed in respect of outstanding positions, which will remain in force as long as the volatility exists, after which the special margin may be relaxed.
Allotment of Deliveries Procedure should be in FIFO




  Annexure 2
  Launch Calendar for NCDEX - Coffee - Robusta Cherry AB Futures Contract
Contract Month First Trading Day First Notice
Day / First
Tender day		 Last Notice
Day/ last
Trading Day		 First Delivery Day Last Delivery Day
Jan-08 10-Sept 2007 7-Jan-08 18-Jan-08 16-Jan-08 29-Jan-08
Mar-08 10-Sept-2007 7-Mar-08 20-Mar-08 18-Mar-08 31-Mar-08
May-08 10-Sept 2007 7-May-08 20-May-08 16-May-08 29-May-08
Jul-08 10-Sept 2007 7-Jul-08 18-Jul-08 16-Jul-08 29-Jul-08
Sep-08 10-Sept 2007 8-Sep-08 19-Sep-08 17-Sep-08 30-Sep-08
Please note that changes in dates for first notice day/ last trading day/ first delivery day and last delivery day are possible subject to announcement of trading /delivery holidays by NCDEX for 2008.






Members and market participants who enter into buy and sell transactions may please note that they need to be aware of all the factors that go into the mechanism of trading and clearing, as well as all provisions of the Exchange's Bye Laws, Rules, Regulations, Product Notes, circulars, directives, notifications of the Exchange as well as of the Regulators, Governments and other authorities.

Members and market participants trading on the Exchange in the commodity contracts shall be deemed to be aware of applicable laws and amendments thereof from time to time, including provisions and rates relating to the sales tax, value added tax APMC Tax, Mandi Tax, octroi, excise duty, stamp duty, etc., applicable on the underlying commodity of any contract offered for trading.

The Exchange shall not be responsible or liable on account of non compliance by any of the members and market participants of any such applicable laws or any amendments thereof including not being aware of rates of taxes, levies, etc., on the underlying commodity of any contract offered for trading.