Introduction

The physical delivery of a matured futures contract shall follow the standard delivery procedures and be completed within the delivery period provided by the futures contract. The delivery period refers to the five (5) consecutive trading days immediately after the last trading day of the futures contract. These five (5) consecutive trading days are called the First, Second, Third, Fourth and Fifth Delivery Day respectively. The Fifth Delivery Day is the last delivery day.
1. The First Delivery Day (Application)
(1) Buyers submit notice of intentions. Buyers submit a notice of intention to accept the required commodities to the Exchange via the Standard Warrant Management System, including information such as the products, quantities, the names of the Designated Delivery Storage Facilities, etc.
(2) Sellers submit standard warrants. Sellers submit the valid standard warrants for which storage fees have been paid in full to the Exchange via the Standard Warrant Management System. Sellers are responsible for the storage fees before the Fifth Delivery Day (including that day), while the buyers are responsible for the storage fees after the Fifth Delivery Day. 2. The Second Delivery Day (Matching)
The Exchange matches and allocates available standard warrants in accordance with the principles of “time priority, quantity rounding, nearest matching, and overall arrangement”. The Exchange allocates the standard warrants that cannot be used for the physical delivery of the futures contract in the next month to the buyers according to the proportion of each buyer’s delivery volume in the total delivery volume of the month.
3. The Third Delivery Day (Payment and obtaining the warrant)
(1) Buyers pay and obtain the warrants. Buyers shall make the payment to the Exchange before 14:00 on the Third Delivery Day and obtain the standard warrants. (2) Sellers receive the payment. The Exchange shall transfer the payment to the sellers before 16:00 on the Third Delivery Day. This time limit may be extended by the Exchange under special circumstances.
4. The Fourth and Fifth Delivery Day (Submitting invoices and returning margin)
Sellers shall submit all the invoices corresponding to the delivery commodities to the Exchange. The format and content of the invoices shall follow the provisions of the Exchange. Other matters regarding the returning of margin and the submission of invoices shall follow the relevant provisions of the Clearing Rules of the Shanghai International Energy Exchange.

Procedure Involved

Standard Delivery Procedure involves a five-day delivery procedure.

Contact

Mr. Sun 021-20767581 sun.dongsheng@shfe.com.cn
Mr. Hu 021-20767727 hu.peng@shfe.com.cn
Mr. Sun 021-20767552 sun.zq@shfe.com.cn