Retender

Retender

The act of an investor selling the delivery note issued by a clearing house upon tender by the counter-party of the futures contract.

Notes:

In certain future contracts, the investor holding the short position may tender the underlying by giving notice to the clearing house for delivery. When this occurs, the holder of the long position receives a note of delivery indicating that he or she will be receiving the underlying good or cash. By retendering the delivery note, investors who are holding long positions can make sure that they do not get actual delivery of the actual underlying. Not all futures contracts require retendering as some are cash settled, and not all future contracts permit a retender.

See also: Clearing House, Futures Contract, Short, Tender