This contract prices Gold 995 and is cash settled
Contract Details
Symbol SMGOLDCS
Grade/Quality 995 Fineness
Trading Unit 32 troy ounces
Price Quotation Currency US Dollars to two decimal places (e.g. US$1356.10)
Price Quotation Unit 1 troy ounce
Tick Size US$0.10 (US$3.2 per contract)
Trading Hours 1000 to 0230 (0130 during US Daylight Saving Time) SGT Monday to Friday
Contract Months Feb, Apr, Jun, Aug, Oct and Dec. Six contracts shall be listed for trading at any time.
Last Trading Day Second to last Business Day of the month preceding the maturing contract month
Settlement Cash
Final Settlement Price The Exchange shall publish a Final Settlement Price which shall be equal to the New York futures settlement price of Gold for the same Contract Month on the Last Trading Day
Daily Price Limit None
Position Limits Customer level: 23000 contracts; 3000 contracts during the last three days of trading
Member level: Higher of 69000 contracts or 25% of the market-wide open position
Commodity Group Precious Metal
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Scope

The provisions herein shall apply to all GOLD Cash Futures Contracts transacted on the Exchange. Procedures for trading, clearing, settlement and any other matters not specifically covered herein shall be governed by SMX and SMXCC Rules.
Contract Symbol

SMGOLDCS

Contract Designation
SMGOLDCSDDMMMYYYY: where SMGOLDCS is the contract symbol and DDMMMYYYY refers to the Contract Month (e.g. June 2011 Contract = SMGOLDCS30MAY2011).
Grade/Quality
The GOLD Cash Futures Contract prices 995 purity.
Contract Size
The traded quantity for the Contract shall be 32 troy ounces.
Quotation Basis
All bids and offers to buy or sell SMX GOLD Cash Futures Contracts shall be quoted in US Dollars per troy ounce to two decimal places (e.g. $ 1407.20).
Minimum Tick Size
The minimum tick size for all bids and offers to buy or sell SMX GOLD Cash Futures Contracts shall be ten U.S. cent ($0.10) per troy ounce (equivalent to $3.20 per Contract).
Contract Months
Trading shall be conducted in each February, April, June, August, October and December. Six contracts shall be listed for trading at any time. A new contract 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 (0130 SGT during U.S. Daylight Saving Time).
Trading Days
Trading shall be conducted Monday through Friday.
Last Trading Day
The Last Trading Day for SMX GOLD Cash Futures Contracts shall be the second to last Business Day of the month preceding the maturing contract month, unless such day is a holiday in the United States, in which case the Last Trading Day will be the first preceding Business Day that is not a holiday in the United States.
Daily Price Range
There shall be no Daily Price Range (DPR) imposed on any bids or offers to buy or sell SMX GOLD Cash Futures Contracts.
Position Limits
The Customer level limit shall be not more than 23000 Contracts net long or net short in all Contract Months combined, unless a Customer 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. The Customer level limit shall also apply to each Broker Member, Trade Member and Remote Member Proprietary Account. Notwithstanding the forgoing, in no event shall a Customer, Broker Member Proprietary Account, Trade Member Proprietary Account or Remote Member Proprietary Account own or control more than 3000 Contracts net short or net long in the last three days of trading in the maturing Contract Month.

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 69000 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 or the Member itself has received a Position Limit Exemption as provide 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 provided for and governed by 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 New York futures settlement price of Gold for the same Contract Month 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)/Exchange for Swaps (EFS) Transactions
EFP and EFS transactions shall be allowed in a manner 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 history of gold can be traced as far back as 2600BC when the . ancient Egyptians considered it a divine and indestructible metal. It was the ancient Greeks who were the first to use gold as a financial commodity.
  • Today, gold is treated primarily as a monetary asset and partly as a commodity.

Demand

  • More than half of the world’s demand for gold arises from just five countries - India, Italy, Turkey, USA and China. Demand is driven by a variety of factors - cultural, socio-economic and financial.
  • The demand for gold comes from 3 main sources
  • Jewellery - Over half of the demand for gold can be attributed to the jewellery industry.
  • Investment demand - This comprises demand for bars and coins as well as ETFs and similar products.
  • Industrial Demand - The use of gold in manufacturing electrical components and dental uses.

Supply

  • Mining - Gold is mined on every continent except Antarctica, and there are about 400 mines in operation across the globe.
  • Scrap - The supply of gold from mines is fairly inelastic. However, the supply of recycled gold from scrap can be easily adjusted and ensures an easily traded supply. This helps to stabilise the price of gold.
  • Central Banks - 110 central banks and international organisations hold about 29,000 tonnes of gold as reserve assets. This is 20 percent of the above ground stock of gold.

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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