Physical Delivery

Physical Delivery

In options and futures, the act of a seller giving the actual underlying asset to a buyer. Physical delivery does not occur for most option and futures transactions; most traders offset their positions by entering an equal but opposite position. However, in order to hedge certain risks, physical delivery does occur on some contracts, notably those involving commodities. See also: Actuals.
References in periodicals archive ?
Contract applies to the City of Turku and the option to group the purchase of electricity, including an open physical delivery, as well as the ability to price fixings, spread over a portfolio management service and market information 01.
The Dubai Mercantile Exchange (DME), the premier international energy futures and commodities exchange in the Middle East, has registered a 30 per cent increase year- on-year in physical delivery volumes with a total of 229,039,000 barrels shipped during 2015 compared to 176,514,000 barrels in 2014.
We have witnessed strong physical delivery volumes recently and this is due to the ever-growing appetite among oil traders to trade the DME Oman contract, both to participate in price discovery and also in physical delivery through the exchange .
The DME Oman contract currently has the largest physical delivery of any energy futures contract in the world.
The Dubai Commodities Clearing Corporation, or DCCC, the central counter-party service provider wholly-owned by the Dubai Gold and Commodities Exchange, or DGCX, has successfully completed its first physical delivery against the region's first plastics futures contract.
The proposed changes are to clarify certain operational aspects of the physical delivery process, and are based on feedback from active rubber market participants.
If you have holdings in the e-commodity series of the National Spot Exchange Limited (NSEL), you may have to take physical delivery of the commodity as the exchange has suspended trading in eseries contracts till further notice.
In July 2009, National Information Standards Organization (NISO) formed the Physical Delivery Working Group to develop recommended practices for physical delivery of library materials.
The good news is that there are now several options available for investing in gold and one need not take physical delivery.
Further, the quality of physical delivery shall be certified by the approved analyzers.
Third, the physical delivery method, which was used for final settlement of 10-year KTB futures, acts as constraint in trading long-term KTB futures since investors felt burdened in securing the deliverable KTBs amid sluggish trading of long-term KTBs.
Sir, So only 1% or 2% of dairy futures contracts are expected to result in physical delivery, with the balance settled by speculators ('Dairy futures market to begin trading in autumn', 24 July, p35)?