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 One of the methods of settling the contracts is by taking or making delivery. Delivery period at Mex Cambodia is on the last 5 days of the contract expiry month. After the scheduled of expiry of contract, members can either square up their positions or take delivery to settle their outstanding contract obligations. Detailed delivery provision and its manual are available with the warehouse Dept of Mex Cambodia. Delivery related arrangements shall be based upon Clearing Member, under guidance from Mex Cambodia. Various steps required to be followed by the participants having outstanding position on the last 5 days of contract expiry month are as follows.
Steps to follow
- Sellers have to convey intention on prior to expiry of contract for trade on the delivery month.
- The intentions are then matched and assigned by the Cambodian Derivatives Clearing House PLC Cambodia with the corresponding buyers. As in the case universally, seller has freedom to tender delivery during the delivery period at any approved delivery centers. In other words, buyer cannot demand and enforce for delivery and about the delivery center of his choice. When the seller gives intimation, intimation made to the corresponding buyer to whom the delivery is assigned by the Clearing Member. Then delivery margin is collected and delivery process is initiated.
- Within three days from the position transfer, the buyer has to maintain the required funds in their clearing & settlement account with the Cambodian Derivatives Clearing House PLC Cambodia while the seller has to tender the certified receipts to the exchange along with the computation of warehouse charges. On the 3rd day, the exchange makes pay-in & payout simultaneously after retaining the warehouse charges margin, governmental duties and other taxes if any from the buyer. Seller has to complete the payment formalities of warehouse charges.
- After the completion of pay-in and payout, duly endorsed certified receipts are sent to the buyer immediately.
- Settlement of warehouse charges, margins, duties and tax margins take place soon after receipt of relevant documents (copies of sales bill, tax form) from the Member/Trader.
- A detailed delivery provision shall be prepared by Clearing Member (CM). After receiving approval from MEX CAMBODIA and the CM shall notify to all relevant parties about delivery details. That shall mention delivery location, period, grading system, dispute settlement procedure and all other requisites.
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