Contract Details
Symbol SMEURUSD
Trading Unit 25,000 EUR
Price Quotation Currency US Dollars to four decimal places (e.g. US$1.2852)
Price Quotation Unit 1 EUR
Tick Size US$0.0001 (US$2.50 per contract)
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)
Contract Months Each current month and March, June, September, December
Last Trading Day Two business days prior to the third Wednesday of the contract month
Settlement Physical, at the London Currency Fixing Rate at 1600 London time
Final Settlement Price Third Wednesday of the expiring month
Daily Price Limit None
Grade/Quality N/A
Commodity Group Currencies
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Scope

The provisions herein shall apply to all Euro versus US Dollar (EUR-USD) Contracts transacted on the Exchange. The procedures for physical delivery and settlement shall be applied as specified in SMXCC Notice 9007 and Circular SMXCC/005/2010 and any subsequent changes specified by the Exchange and/or Clearing Corporation in an amendment or new Notice or Circular as may be issued from time to time. Procedures for trading, clearing, settlement, delivery and any other matters not specifically covered herein shall be governed by SMX and SMXCC Rules.

Contract Symbol

SMEURUSD

Contract Designation
SMEURUSDDDMMMYYYY, where SMEURUSD is the Contract Symbol and DDMMMYYYY refers to Contract Month expiry (e.g. December 2010 Contracts in EUR-USD will be designated as SMEURUSD13DEC2010)
Contract Size
The traded quantity for the Contract shall be 25,000 euro (EUR).
Quotation Basis
All bids and offers to buy or sell SMX EUR-USD Futures Contracts shall be quoted in U.S. dollars to four decimal places (e.g. US$1.2652).
Minimum Tick Size
The minimum tick size for all bids and offers to buy or sell SMX EUR-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. Five Contracts shall be listed for trading at any time, in the following manner: current month Contract and four quarterly months Contracts.

A new Contract Month shall be listed on the first Business Day following the Last Trading Day of an expiring Contract Month.
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 EUR-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 for either the European Central Bank (ECB) 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 EUR-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 EUR-USD at 1600 London time, as published by Reuters on page on the Last Trading Day.
Delivery and Funds Settlement Day
The Delivery and Funds Settlement Day for SMX EUR-USD Futures Contracts shall be the third Wednesday of the maturing Contract Month, unless such Business Day is a bank holiday for ECB, Singapore or the United States, whereby the Delivery and Funds Settlement Day shall be the next Business Day which is not a bank holiday in Singapore, ECB or the United States.
Delivery Basis
All open positions at the end of trading on Last Trading Day shall result into physical delivery of Euro.

A Clearing Member holding a short position (“Seller”) after the end of Last Trading Day shall be required to deliver Euro as specified in Circular SMXCC/005/2010, and any subsequent changes specified by the Exchange and/or Clearing Corporation in an amendment or new Notice or Circular as may be issued from time to time.

A Clearing Member holding a long position (“Buyer”) after the end of Last Trading Day shall be required to accept the delivery of Euro as specified in Circular SMXCC/005/2010, and any subsequent changes specified by the Exchange and/or Clearing Corporation in an amendment or new Notice or Circular as may be issued from time to time.
Delivery Notice
SMXCC shall issue Delivery Notices (Delivery Pay-in Notices and Delivery Pay-out Notices) to all open short positions and all open long positions at the cessation of trading on the Last Trading Day. Such Delivery Notices shall include the quantity to be delivered or received and Delivery Invoice.

Marking of buyers and sellers for delivery after the end of Last Trading Day shall be done by the Exchange/Clearing Corporation at their sole and absolute discretion.
Delivery Invoice
The Delivery Invoice is the delivery settlement amount which shall be calculated as the quantity as per Delivery Instruction multiplied by the Final Settlement Price.
Delivery Pay-in Date
Subject to the section on Delivery and Funds Settlement Day, the Delivery Pay-in of the Euro towards the open short positions shall be made within two Business Days following the Last Trading Day as prescribed in SMXCC Notice 9007 and Circular SMXCC/005/2010, and any subsequent changes specified by the Exchange and/or Clearing Corporation in an amendment or new Notice or Circular as may be issued from time to time.
Delivery Pay-out Date
Subject to the section on Delivery and Funds Settlement Day, the Delivery Pay-out of the Euro shall be within two Business Days following the Last Trading Day as prescribed in Circular SMXCC/005/2010, and any subsequent changes specified by the Exchange and/or Clearing Corporation in an amendment or new Notice or Circular as may be issued from time to time.
Funds Pay-in Date
Subject to the section on Delivery and Funds Settlement Day, the Funds Pay-in shall be made within two Business Days following the Last Trading Day as prescribed in SMXCC Notice 9007 and Circular SMXCC/005/2010, and any subsequent changes made by the Exchange and/or Clearing Corporation in an amendment or new Notice or Circular as may be issued from time to time.
Funds Pay-out Date
Subject to the section on Delivery and Funds Settlement Day, the Funds Pay-out shall be within two Business Days following the Last Trading Day as prescribed in Circular SMXCC/005/2010, and any subsequent changes made by the Exchange and/or Clearing Corporation in an amendment or new Notice or Circular as may be issued from time to time.
Delivery Obligation/Close Out
All unfulfilled delivery obligations, shall be cash-settled based on the following:

  1. For a Buyer failing to take delivery (defaulting Buyer), the cash settlement price shall be the lower of the FSP or the price on the Delivery and Funds Settlement Day, as calculated by SMXCC; or
  2. For a Seller failing to make delivery (defaulting Seller), the cash settlement price shall be the higher of the FSP or the price on the Delivery and Funds Settlement Day, as calculated by SMXCC.
A penalty as per the details herein shall be levied on the defaulting Member.

A penalty of the higher of US$500 or 1% is levied on all sellers and buyers failing to fulfil delivery obligations, of which 75% shall be credited to the account of non defaulting counter buyer and seller as the case may be, 15% to the Settlement Guarantee Fund and the balance 10% shall be retained by the Exchange towards administrative expenses.

Any such penalties shall be debited from Member Settlement Account of the Seller’s or Buyer’s Clearing Member who has failed to fulfil the delivery obligations on the second Business Day following the Last Trading Day as defined under Delivery and Funds Settlement Day above.
Currency Settlement Bank
The physical delivery of Euro shall be made through the Currency Settlement Bank, designated by the Exchange in Circular SMXCC/005/2010, and any subsequent changes specified by the Exchange and/or Clearing Corporation in an amendment or new Notice or Circular as may be issued from time to time.
Settlement Bank Charges
Any and all incidental charges incurred other than those expressly provided for herein shall be borne by:

  • Seller up to and including the Funds Pay-out date
  • Buyer after Funds Pay-out date
Delivery Validation Process
Clearing Members shall open an Euro denominated account with the designated Currency Settlement Bank as specified in Circular SMXCC/005/2010, and any subsequent changes specified by the Exchange and/or Clearing Corporation in an amendment or new Notice or Circular as may be issued from time to time, to fulfil delivery obligations.
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

  • As the name indicates, the Euro is the official currency of the European Union (EU). 16 member states of the EU currently use the Euro as their currency. These countries are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.
  • The Euro is used in five other countries, namely, Mayotte, Miquelon, Saint Pierre, San Marino and Vatican City, with formal agreements. The currency is under circulation in six other countries without any formal agreements. These countries include Akrotiri, Andorra, Dhekelia, Kosovo and Montenegro.
  • At present, the Euro is one of the strongest contenders to the US Dollar.

Lanching the EURO

  • Launched on 1st January 1999, the Euro was an invisible currency for the first three years, being used only for accounting purposes.

The Role of the ECB
  • The European Central Bank (ECB) is the central bank for the Euro zone. One of its key responsibilities is maintaining the purchasing power of the Euro. With interest rates as the popular tool for monetary policy, the ECB aims to keep the level of inflation under control.
  • Today, Euro bank notes circulate widely and are often spent in an EU country different from the one in which they are issued on account of increasing business and leisure travel and cross-border shopping. The ECB is responsible for ensuring that each Euro zone country has enough bank notes and coins and finds it necessary to redistribute notes and coins

Advantages and Disadvantages of A Single Currency

  • The Euro has made everyday life and conducting business simpler for the over 300 million people living in the Euro zone. It allows for easier payments and a simpler way to compare prices across countries.
  • The disadvantages however are higher prices and the lack of autonomous economic policy.

Factors Affecting the Exchange Rate

  • The Euro is mostly traded in pairs with the US Dollar. It means that when the US Dollar rises against the Euro, the Euro falls. For instance, if the Federal Reserve hikes interest rates to combat inflation in the US, the dollar will show an upward trend. This rise in the dollar will automatically imply a fall in the Euro.
  • A majority of the world oil trade is conducted in US Dollars. As a result, when oil prices rise, the US Dollar strengthens and Euro weakens.
  • The strength of the Euro is also largely dependent on the manufacturing industry of countries in the Euro zone. Improved performance of these economies acts as a positive signal for the currency.

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.

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