BFX EURUSD Futures
Detailed Product Specification
Scope
The provisions contained herein shall apply to the EURUSD futures contract traded on the
Bahrain Financial Exchange (hereinafter referred to as the “BFX”). Procedural guidelines for
trading, clearing, settlement and/or any other matter not specifically covered herein, shall be
governed by the BFX and the BFX Clearing and Depository Corporation (hereinafter referred to
as the “BCDC”) Rules, Regulations and Circulars issued periodically by the exchange.
Contract Description
BFX Euro versus US Dollar futures contract
Contract Symbol
BFXEUUS
Contract Designation
BFXEUUSDDMMMYYYY where BFXEUUS is the contract symbol and DDMMMYYYY refers to the
contract date, month and year (e.g. the March 2011 contract expiring on 14th March 2011
Contract is referred to as BFXEUUS14MAR2011).
Contract Listings
The Exchange shall launch futures contracts expiring on a quarterly basis for the months,
March, June, September and December. Upon maturity of the near-month futures contract (i.e.
March 2011), the subsequent far-month contract (expiring in March 2012) shall be launched on
the first business day after the maturity of the March 2011 futures contract.
Trading Hours
The futures contract can be traded from Monday to Friday between 14:30 and 22:30 Bahrain
time (GMT+3). Please refer to the relevant exchange circular for change in trading hours due to
Day Light Saving period.
Contract Size
The lot size of one futures contract is EUR 12,500.
Quotation Basis
All bid and offer quotes for BFX EURUSD futures contracts shall be quoted in US Dollars and
Cents per Euro up to the fourth decimal place (for example, USD 1.3201 per 1 EUR).
www.bfx.bh
info@bfx.bh
12 Floor, East Tower – Bahrain Financial Harbour, P.O. Box 1936, King Faisal Highway, Kingdom of Bahrain. T. 973 1651 1511, F.1651 1599, E. info@bfx.bh, W. www.bfx.bh
th
Tick Size and Tick Value
The tick size (the minimum price movement) for all bids and offers to buy or sell BFX EURUSD
futures contracts shall be USD 0.0001 per EUR. The Tick Value (the change in the contract value
for every one tick movement) would be USD 1.25 per Contract.
Last Trading Day (Contract Maturity Date)
The Last Trading Day shall be two business days before the third Wednesday of the contract
month. In the event of the Last Trading Day not being a business day, the Last Trading Day shall
be the business day preceding the stipulated Last Trading Day.
Settlement Type
The final settlement of the BFX EURUSD futures contract on its maturity date shall be based on
Seller’s option.
Daily Settlement Price
The Daily Settlement Price shall be calculated based on the Weighted Average price of all trades
executed in the last 30 minutes of each trading day. The Exchange Price Committee reserves
the right to change the Daily Settlement Price in the event of significant deviation from the
reference price in International Markets. The Daily Settlement Price shall be rounded to the
nearest multiple of the tick size. Members may refer to the relevant exchange circulars for
more details.
Final Settlement Price
The Final Settlement Price on the contract maturity date shall be the reference price of EURUSD
on international markets, rounded to the nearest multiple of the tick size.
Settlement Date
Daily Settlement of funds pay-in and pay-out towards margin and mark-to-market profits and
losses would be completed on the Business day following each Trading Day (i.e. on a T+1 day
basis). In the event of the settlement day not being a business day, the settlement day shall be
the following business day. The exchange shall notify any change in the contract settlement
date due to holiday in Bahrain and/or in the International markets.
Maximum Order Size
The maximum size of each order for the futures contract is 200 lots.
Daily Price Range
There shall be no limits on intra-day price movement. However, to restrict data entry errors,
the system shall not allow entry of orders having prices higher or lower than 2% as compared to
the previous day’s settlement prices. The BFX may relax the intraday range for the prices of the
contract approaching the ±2% limit.
www.bfx.bh
info@bfx.bh
12 Floor, East Tower – Bahrain Financial Harbour, P.O. Box 1936, King Faisal Highway, Kingdom of Bahrain. T. 973 1651 1511, F.1651 1599, E. info@bfx.bh, W. www.bfx.bh
th
Position Limits
Please refer to the relevant exchange circulars for more details.
Initial Margin
The initial margin for taking a long (buy) or short (sell) position in the futures contract is based
on the Standard Portfolio Analysis of Risk (SPAN®).
Special (Additional) Margins
If the volatility of the futures contract prices or its underlying asset prices increase, the BFX and
the BCDC reserves the right to impose a special (additional) margin over and above the initial
margin on all open futures contract positions.
Calendar Spread Benefit on the Margins
100% benefit on margins of all outstanding calendar spread positions.
Delivery and Settlement Procedure for EURUSD Futures Contracts
Delivery and Funds Settlement Day
The delivery and funds settlement day upon the maturity of the BFX EURUSD futures contracts
shall be the third Wednesday of the maturing contract month, unless such business day is a
bank holiday in Bahrain and / or in the international markets, whereby the delivery and funds
settlement day shall be the following business day.
Delivery Logic
The Delivery Logic for all the currency futures contract is based on Seller’s Option. Buyer(s)
having open position(s) after the close of trading on the contract maturity date (Last Trading
Day) may be marked for delivery. All positions not marked for delivery shall be cash-settled.
Delivery Notice
The short position (“Seller”) and long position (“Buyer”) holders intending to deliver the
underlying asset of the futures contract shall provide a delivery notice to the BFX Clearing &
Depository Corporation (BCDC), before the close of trading on the last trading day of the
currency futures contract, containing such information as the BCDC may prescribe. A Delivery
Notice, once issued, cannot be withdrawn or cancelled without the written consent of BCDC.
Delivery Obligation Notice
BCDC shall issue a Delivery Obligation Notice after marking of delivery. Such delivery obligation
notices shall include the quantity to be delivered or received. Marking of buyers and sellers for
delivery after the end of Last Trading Day shall be done by the Exchange/Clearing Corporation
at its sole and absolute discretion.
www.bfx.bh
info@bfx.bh
12 Floor, East Tower – Bahrain Financial Harbour, P.O. Box 1936, King Faisal Highway, Kingdom of Bahrain. T. 973 1651 1511, F.1651 1599, E. info@bfx.bh, W. www.bfx.bh
th
Tender Period / Delivery Period Margin
The Tender Period / Delivery Period margin at three times the initial margin shall be blocked on
both long and short positions on the contract maturity date.
Delivery Pay-In
Delivery pay-in to be completed before 12:00 hours Bahrain Time (GMT+3) on the Settlement
Day.
Delivery Pay-Out
Delivery pay-out to be completed after 14:00 hours Bahrain Time (GMT+3) on the Settlement
Day.
Currency Settlement Account
It is the responsibility of each Clearing Member that intends to clear currency futures contract,
whether for its own account or that of a Client, to have opened a Currency Settlement Account
denominated in the relevant currency with an exchange-approved Clearing and Settlement
Bank.
Mode of Communication
By Fax / Courier
Delivery Obligations and Penalty for Default on Delivery
The short position (“Seller”) holder of the futures contract who has been marked for delivery,
shall, not later than a time on the settlement day prescribed by the BCDC, have to credit to the
Seller’s Currency Settlement Account, an amount equivalent to the selling (deliverable) quantity
of the relevant Currency Futures Contract. The long position (“Buyer”) holder of the futures
contract who has been marked for delivery, shall, not later than a time on the settlement day as
prescribed by the BCDC, have to credit to the Buyer’s Currency Settlement Account, an amount
(funds pay-in) equivalent to the buying quantity of the relevant Currency Futures Contract.
In the event of a default by either the buyer or seller on the settlement day, a penalty shall be
levied on the defaulting counterparty and the corresponding open positions shall be cash
settled. Please refer to exchange circulars for details on the penalty for default of delivery
obligations.
www.bfx.bh
info@bfx.bh
12 Floor, East Tower – Bahrain Financial Harbour, P.O. Box 1936, King Faisal Highway, Kingdom of Bahrain. T. 973 1651 1511, F.1651 1599, E. info@bfx.bh, W. www.bfx.bh
th
Disclaimer
The information and contents (the 'Contents') provided in this ‘BFX Euro versus US dollar Futures Contract’ (the ‘futures contracts’), are provided without
warranties of any kind. Bahrain Financial Exchange (BFX) and/or its respective affiliates and / or officers and their employees do not warrant and hereby
disclaim any warranty as to the accuracy, correctness, reliability, correctness, timeliness, non-infringement, title, merchantability or fitness for any particular
purpose of the Contents. BFX and/or its respective affiliates and / or officers and their employees shall not be liable for any damage or loss of any kind,
howsoever caused as a result of the (direct or indirect) use of the Contents, including but not limited to any damage or loss suffered as a result of reliance on
the Contents. This futures contract is made available on the condition that errors or omissions shall not be made the basis for any claims, demands or cause of
action against the BFX and/or its respective affiliates and / or officers and their employees. The Contents do not constitute professional advice or provision of
any kind of services and should not be relied upon as such. BFX and/or its respective affiliates and / or officers and their employees do not make any
recommendation and assume no responsibility towards any investments or trading in commodities, currencies, interest rate, equity or any financial products or
instruments such as futures, options and swaps done based on any information given in the Contents and any such investment or trade is subject to investment
and commercial risks for which BFX and/or its respective affiliates and / or officers and their employees shall not be responsible.
Trading on this Futures Contract involves substantial risk. Any individual or entity should carefully consider whether trading is suitable in light of prevailing
circumstances, knowledge and financial resources. The information contained in this document does not constitute a solicitation to buy or sell futures
contracts. Only persons who understand the risks involved in trading of derivatives such as futures should undertake transactions in futures contracts.
Transactions in futures contracts carry a high degree of risk. The amount of Initial margin is small relative to the value of the futures contract so that
transactions are 'leveraged' or 'geared'. A relatively small market movement will have a proportionately larger impact on the funds deposited or to be
deposited. If the market moves against open positions or margin levels are increased, the individual or entity having open positions in futures contracts may be
called upon to pay additional funds on short notice to maintain the existing open positions. If funds are not deposited within the stipulated time period, the
existing open positions may be liquidated at a loss. Futures contracts involve Mark-to-Market of profits or losses. This document does not guarantee profit by
way of trading in futures contracts. Trading in Futures contracts would subject the individual or entity to the Business Rules and Regulations of the BFX. The
individual or entity taking positions in futures contracts needs to be aware of the provisions of the Business Rules and Regulations of the BFX as well as periodic
notices that are released by the BFX regarding trading in futures contracts. Without limiting any of the foregoing, in no event shall BFX or their respective
affiliates and /or its officers and their employees have any liability for any lost profits or indirect, punitive, special or consequential damages or losses, even if
notified of the possibility of such damages.
SPAN® is a registered trademark of the Chicago Mercantile Exchange, used herein under License. The Chicago Mercantile Exchange assumes no liability in
connection with the use of SPAN by any person or entity.
www.bfx.bh
info@bfx.bh
12 Floor, East Tower – Bahrain Financial Harbour, P.O. Box 1936, King Faisal Highway, Kingdom of Bahrain. T. 973 1651 1511, F.1651 1599, E. info@bfx.bh, W. www.bfx.bh
th