What Is a "Delivery Notice" in Physically-Settled Futures? ▴ Learn

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.

What Is the ‘Delivery Period’ for Physically Settled Futures Contracts?

What Is the Primary Difference between Cash-Settled and Physically-Settled Futures?

Explain the Difference between Physically-Settled and Cash-Settled Futures Contracts

Does the Settlement Process for Cash-Settled Options Differ from Physically-Settled Options at Expiration?