What Is a "Delivery Notice" in Physically-Settled Futures? ⎊ Path

What Is a “Delivery Notice” in Physically-Settled Futures?

A delivery notice is a formal document issued by the clearinghouse or exchange to the holder of a short position (seller) informing them of their obligation to deliver the underlying commodity. Simultaneously, a corresponding notice is issued to the holder of a long position (buyer) informing them of their obligation to take delivery.

This process initiates the physical settlement procedure during the delivery period.

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Glossar

Delivery Notice

Definition ⎊ A Delivery Notice constitutes the formal communication issued by a clearing house or exchange to the short position holder in a physically-settled futures or options contract, informing them of their obligation to deliver the underlying cryptocurrency asset.