Contract Specifications

Trade Mogul India

March 2013




Contract Specifications 2011

GHF Group | CONFIDENTIAL
2

Brent Crude
Brent Crude is a major trading classification of sweet light crude oil comprising Brent
Blend, Forties, Oseberg and Ekofisk crudes (also known as BFOE), all sourced from
North Sea. Brent is the leading global price benchmark for Atlantic basin crude oils,
pricing two thirds of the worlds internationally traded crude oil supplies. It was
originally traded on the open outcry International Petroleum Exchange in London,
but since 2005, it has been traded on the electronic Intercontinental Exchange,
known as ICE.
Contract Specification
ICE Brent Crude futures contract
Contract size: 1,000 barrels (42,000 US gallons)
Contract month listing: All calendar months
Settlement Procedure: Cash/ Physical Delivery
Quotation: The contract price is in US dollars and cents per barrel
Minimum price flux: One cent per barrel, equivalent to a tick value of $10
Trading hours: 5:30 am to 3:30 am IST (22 hours)
Expiration Date: the 15th day before the first day of the contract month
Factors affecting Brent oil market
Any factor that affects either the supply or the demand of oil around the globe, will
affect the Brent oil market. Apart from having its own fundamentals, performance of
the economy on a whole will have an effect on oil. Some of the important ones
currently governing this market have been listed below:
1. North Sea production
2. Middle-east tensions (Iran, Syria)
3. Actions by central banks (Fed & ECB)
4. Weekly US crude inventory data
5. Prices of other grades such as Russian Urals, West African crude, etc.
6. Refinery maintenance season & Refinery margins
Contract Specifications 2011

GHF Group | CONFIDENTIAL
3

SP500
The SP500 is the benchmark stock index of the United States representing the
market capitalization of 500 different US companies in various sectors such as
Financials, Energy, Consumer goods, Utilities, Technology, Industrials, Healthcare and
telecom.
Contract specification
CME E-mini S&P 500 Futures
Contract Size: $50 x E-mini S&P 500 futures price
Contract month listing: Mar, Jun, Sep and Dec
Settlement Procedure: Cash
Quotation: The contract price is in US dollars
Minimum price increment: 0.25 index points=$12.50
Trading hours: 2:00 am 1:45 am (IST) (23 hrs 45 mins)
Expiration Date: Trading can occur up to 8:30 a.m. central Time on the 3rd Friday of
the contract month
Factors affecting E-mini S&P 500 Futures
1. The Federal Reserve (Central Bank): Any interest rate or policy change directly
affects money supply in the system and investor confidence which in turn moves
equity prices.
2. Performance of major industries: They project investor sentiments regarding the
Equities & hence affect Index prices
3. Economic data: They represent current economic situation which in turn drives
respective stock prices & investor sentiments.
Major Drivers
a. Inflation
b. Growth
c. Unemployment
4. Cross rate effects: Most of the global economies are interlinked & this is what links
different Equity markets
5. Political Factors: Political will affects policy decisions which drive respective stock
prices.
Contract Specifications 2011

GHF Group | CONFIDENTIAL
4

GOLD
Gold or the yellow metal as it is fondly referred has been a relative store of value for
centuries where it both acted as a medium of exchange as well as an investment
vehicle. Often regarded as a safe haven, Gold is one commodity which continues to
be widely tracked both by the investment community as well as the central bankers
around the world to understand the confidence levels in the global financial system.
Contract Specification
COMEX Gold futures
Contract Size: 100 Troy ounces
Contract month Listing: Feb, Apr, Jun, Aug, Oct and Dec
Settlement Procedure: Physical Delivery
Quotation: The contract price is in US dollars per Troy ounce
Minimum price increment: $0.10 per troy ounce
Trading hours: 3:30 am to 2:45 am (IST) ( 23 hrs 15 mins)
Expiration Date: Third last business day of the delivery month.

Factors affecting Gold
In the current post apocalyptic world of uncertainty, Gold has become sensitive to
economic data around the world as investors continue to weigh the health of the
global economy with every emanating data point. Actions by central banks wanting
to backstop economies would effectively mean that policy pronouncements by
central bankers have gained even more significance in predicting the price of the
yellow metal in recent times.
1. Global Economic Data
2. Central Bank Policy Announcements and Currency Interventions
3. Geo-political tensions and unexpected shocks
4. Fluctuations in the global reserve currency - Dollar
5. Perceived credit worthiness of major economies of the world
6. Touchy Investor sentiment causing a flight to quality
7. Demand from traditional sources such as Jewellery , Bar and Coins
8. Proliferation of Exchange Traded Funds(ETFs)
Contract Specifications 2011

GHF Group | CONFIDENTIAL
5

CORN
Corn or maize is a native grain of the Americas. It is part of the coarse grain family,
which also includes barley, sorghum, oats and rye. Corn is the worlds largest cereal
crop in terms of global production, amounting to 882 million tones. The grain is used
primarily for food, animal feed and as a feedstock for ethanol production. Corn
fundamentals are dictated more by US market conditions compared to other
members of the grain complex. This is largely due to the fact that the United States is
the worlds largest producer and exporter of corn, representing 35% of global
production and 33% of world exports in 2012.
Contract Specification
CME CORN futures
Contract Size: 5,000 bushels (~ 127 Metric Tons)
Contract month Listing: March (H), May (K), July (N), September (U) & December (Z)
Settlement Procedure: Physical Delivery
Quotation: The contract price is in cents per bushel
Minimum price increment: 1/4 of one cent per bushel ($12.50 per contract)
Trading hours: 5:00 pm - 2:00 pm, Sunday - Friday Central Time
Expiration Date: The business day prior to the 15th calendar day of the contract
month.

Factors affecting Corn
1. Supply and demand fundamentals
2. Weather conditions in growth areas (US corn belt, Argentina, Brazil)
3. Ethanol demand
4. Macroeconomic risk environment
5. Fluctuations in the global reserve currency - Dollar
6. Inflation and interest rate environment
7. Proliferation of commodity funds