Futures trading conditions
With Saxo Bank you avoid physical delivery of the underlying asset on expiry of a futures contract, which is not supported. Therefore, we advise you to take note of the expiry and first notice dates (FND) of any futures contracts in which you have positions and ensure they are closed before the appropriate day, as described below.
For some contracts, the FND which Saxo Bank utilises could be several days earlier than the FND provided by the relevant exchange. Please always refer to the trading conditions displayed on the contract in the trading platform as well as the trade ticket to see specifications for each contract before trading.
- If the expiry day is prior to the first notice day (FND) as utilised by Saxo Bank, the contract will be closed on the expiry day.
- If the FND as utilised by Saxo Bank is the same or prior to the expiry day the contract will be closed the trading day prior to such FND.
If futures positions are not closed before the relevant date, Saxo Bank will close the position on your behalf at the first available opportunity at the prevailing market rate. Any resulting costs, gains or losses will be passed on to you.
For Milling Wheat, Corn, Rapeseed & Malting Barley Saxo Bank must follow Exchange Rules with effect up to 5 days prior to expiry. As a consequence:
- Short positions may be forced closed within five days from the expiry day with a cut-off time of 16:00 CET daily.
- All open positions will be forced closed one day prior to expiry, where circumstances apply.
The indirect clearing regime enables indirect clients the same protections as direct clients of clearing members (such as Saxo Bank) have on the CCP, e.g. counterparty risk on the CCP. The indirect clearing rules further extend CCP backed counterparty risk mitigation to the indirect clearing client through a segregated net or gross omnibus account held at the CCP.
Pursuant to Commission Delegated Regulation (EU) 2017/2154 of 22 September 2017 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards on indirect clearing arrangements, indirect clearing is not a requirement pursuant to EMIR; it is optional for “a client” (Saxo Bank) to offer indirect clearing to “indirect clients” (You).
Saxo Bank holds client positions in a segregated omnibus account in the name of Saxo Bank. This does not provide the same protections for indirect clients that hold positions in an indirect segregated omnibus account (Net or Gross) at the CCP.
From a trading and execution perspective, a client of Saxo Bank trading Futures and/or Options is trading on the exchange and orders are being routed to the regulated venue for execution. Hence, all benefits subject to the rule book of the exchange would still apply. However, the transaction between Saxo Bank and the WLC is not a cleared transaction that is recognized by the CCP (Central Counterparty Clearing House). This also means that the WLC does not have the same level of protection in the case of default within the clearing chain and is exposed to counterparty risk towards Saxo Bank A/S.
