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This contract prices Australian dollars against US dollars and is cash-settled. |
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Contract Details |
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Symbol |
SMAUDUSD |
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Trading Unit |
25,000 AUD |
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Price Quotation Currency |
US Dollars to four decimal places (e.g. US$0.6352) |
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Price Quotation Unit |
1 AUD |
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Tick Size |
US$0.0001 (US$2.50 per contract) |
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Trading Hours |
The Trading Hours shall be 1000 to 0230 SGT except on the Last Trading Day of a Contract when the Trading Hours shall be 1000 to 2400 SGT (2300 SGT during British Summer Time). |
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Contract Months |
Each current month and five consecutive months |
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Last Trading Day |
Two business days prior to the third Wednesday of the contract month |
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Settlement |
Cash settled, at the London Currency Fixing Rate at 1600 London Time on the Last Trading Day |
| Daily Price Range |
None |
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Position Limits |
Customer level: None
Member level: Higher of 200,000 and 25% of the market-wide open position |
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Grade/Quality |
N/A |
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Commodity Group |
Currencies |
Scope
The provisions herein shall apply to all Australian Dollar versus US Dollar (AUD-USD) Contracts transacted on the Exchange. Procedures for trading, clearing, settlement, and any other matters not specifically covered herein shall be governed by the Rules.
Contract Symbol
SMAUDUSD
Contract Designation
SMAUDUSDDDMMMYYYY, where SMAUDUSD is the Contract Symbol and DDMMMYYYY refers to Contract Month expiry (e.g. September 2009 Contracts in AUD-USD will be designated as SMAUDUSD14SEP2009)
Contract Size
The traded quantity for the Contract shall be 25,000 Australian dollars (AUD).
Quotation Basis
All bids and offers to buy or sell SMX AUD-USD Futures Contracts shall be quoted in U.S. dollars to four decimal places (e.g. US$0.6352).
Minimum Tick Size
The minimum tick size for all bids and offers to buy or sell SMX AUD-USD Futures Contracts shall be one ten-thousandth of a U.S. dollar (US$0.0001), equivalent to US$2.50 per Contract.
Contract Months
Trading shall be conducted in each calendar month of the year. Six consecutive Contracts shall be listed for trading at any time.
Trading Hours
The Trading Hours shall be 1000 to 0230 SGT except on the Last Trading Day of a Contract when the Trading Hours shall be 1000 to 2400 SGT (2300 SGT during British Summer Time).
Trading Days
Trading shall be conducted Monday through Friday.
Last Trading Day
The Last Trading Day for SMX AUD-USD Futures Contracts shall be two Business Days prior to the third Wednesday of the maturing Contract Month, unless such Business Day is a bank holiday in the United States or if the following Business Day (i.e. the first Business Day prior to the third Wednesday) is a bank holiday in either Australia or the United States, whereby the Last Trading Day shall be the preceding Business Day.
Daily Price Range
There shall be no Daily Price Range (DPR) imposed on any bids or offers to buy or sell SMX AUD-USD Futures Contracts.
Position Limits
There shall be no Customer level limit on net long or net short Contracts in all Contract Months combined.
The Member level limit, being applied to each Broker Member's and Remote Member's combined Customer and proprietary accounts, shall be not more than the higher of 200,000 Contracts net long or net short in all Contract Months combined or twenty-five percent (25%) of open interest in all Contract Months combined, unless Customer(s) of such Member has received a Position Limit Exemption as provided for and governed by SMX Notice 3004 and any subsequent changes specified by the Exchange and/or Clearing Corporation in an amendment or new Notice as may be issued from time to time.
Daily Settlement Price
The Daily Settlement Price (DSP) shall be computed and published as specified in SMX Notice 3005 and any subsequent changes specified by the Exchange and/or Clearing Corporation in an amendment or new Notice as may be issued from time to time.
Final Settlement Price
The Exchange shall publish a Final Settlement Price which shall be equal to the London Currency Fixing Rate for AUD-USD at 1600 London time as published by Reuters on page <FXCLOSE> on the Last Trading Day.
Final Settlement
All remaining open positions at the end of trading on the Last Trading Day for the Contract Month shall be cash-settled at the Final Settlement Price.
Exchange for Physical (EFP) and Exchange for Swaps (EFS) Transactions
EFP and EFS transactions shall be allowed as per procedures as specified in SMX Notice 3006 and any subsequent changes specified by the Exchange and/or Clearing Corporation in an amendment or new Notice as may be issued from time to time.
Introduction
- The Australian dollar has been the official currency of the Commonwealth of Australia since February 14th, 1966.
- In December 1983, the then Australian government decided to 'float' the Australian Dollar. This deregulation was aimed at making the financial system more efficient.
- The Australian Dollar (AUD) is a commodity-dominated currency which is currently the fifth most traded in global foreign exchange markets. It makes up to 7.6 percent of total forex transactions (approximately 302 billion dollars a day).
- The currency is a popular choice for traders as it is backed by a strong and stable economy, lacks government intervention in the forex market, and because of Australia's location in the Asia-Pacific region.
International Influences on the Australian Dollar
- Deregulation coupled with globalisation has made the Australian Dollar increasingly sensitive to international factors. These factors include overseas interest rate differentials, upward and downward movements of global stock markets, levels of global growth and demand, the level of overseas confidence and geopolitical events and issues.
- Australia exports close to $200 billion of commodities annually, accounting for 55% of total exports. Changes in commodity markets thus affect the movement of the Australian Dollar.
- Demand for Australian commodities has greatly benefitted from rapid economic growth in Asia, especially China.
- Australia has the largest reserves for uranium in the world. As the world seeks alternative sources of energy, this presents Australia with another exciting economic opportunity which will impact its currency movements.
Domestic Influences on the Australian Dollar
- Domestic levels of interest rate, inflation, economic growth and expectations continue to impact movements in the Australian Dollar.
- The Reserve Bank of Australia may decide to participate in the forex markets as a buyer and seller of currency during times of heavy volatility. In most instances, the dirty float is meant to act as a buffer against an external economic shock before its effects become disruptive to the domestic economy.
Disclaimer: The information and contents (the 'Contents') are provided
without warranties of any kind. SMX and/or its officers and employees do not warrant
and hereby disclaim any warranty as to the accuracy, correctness, reliability, currentness,
timeliness, non-infringement, title, merchantability or fitness for any particular
purpose of the Contents. SMX and/or it officers and employees shall not be liable
for any damage or loss of any kind, howsoever caused as a result (direct or indirect)
of the use of the Contents, including but not limited to any damage or loss suffered
as a result of reliance on the Contents. The Contents do not constitute professional
advice or provision of any kind of services and should not be relied upon as such.
SMX and/or its officers and employees do not make any recommendation and assume
no responsibility towards any investments or trading in commodities or commodity
futures done based on any information given in the Contents and any such investment
or trade is subject to investment and commercial risks for which SMX and/or its
officers and employees shall not be responsible. If financial, investment or any
other professional advice is required, please seek the advice of competent professionals.