In a Physically-Settled Market, What Is the Significance of the “Delivery Period”?

The delivery period is the specified window of time following the last trading day during which the physical transfer of the underlying asset must occur. Its significance lies in the fact that it defines the final terms of the contract's obligation.

The delivery period is when the convergence of spot and futures prices is fully enforced, as the short position must source and deliver the asset, and the long position must accept it.