| Scope of the Contract |
It’s the average overnight interbank interest rate of the Bank of Zambia. |
| Trading Months and Hours |
Trading in all contract months shall be conducted between the hours of 8:30 a.m. and 4:30 p.m. |
| Specifications |
The contract size will be 1,000,000 Kwachas. |
| Contract Months |
As listed in PANEX Derivatives Division expiry calendar |
| Expiration Date |
Thursday before last Friday of the settlement month. Public holiday could push it a day or two earlier. |
| Exercise Style |
Futures may be exercised on any business day prior to the expiration date. |
| Expiration Months |
January, February, March, April, May, June, July, August, September, October, November, December. |
| Expiration Dates |
The Saturday immediately following the third Friday of the expiration month. |
| Tick Size |
Vary ( Size of the contract) |
| Position Limits |
Limits vary according to the number of outstanding shares and trading volume. The largest, most frequently traded Money Markets have a futures position limit of 11,000 contracts; smaller capitalization Money Markets may offer position limits of 7500 or 4500 contracts. Customer hedge exemptions are available. Exemption from speculative position limits for bona fide hedging transactions and positions may be granted by the president of the Exchange pursuant to the terms and conditions specified by the exchange. Application for exemption from speculative position limits for hedging purposes must be made by letter or e mail to the president of the Exchange demonstrating compliance with all requirements of Exchange |
| Minimum Margin |
All contracts remaining open at the expiration of trading shall be cash settled according to the terms contained in this section. All contracts open at the expiration of trading shall be settled through the Exchange’s clearinghouse using normal variation margin procedures. All contracted will be cash settled in T+0. Where delivery is allowed the exercise notices tendered on any business day will result in delivery of the underlying Money Market on the fifth business day following exercise. |
| Expiration |
The Saturday immediately following the third Friday of the expiration month |
| Aggregation |
The position limits specified in this chapter shall be Final. |
| Currency |
Contracts in respect of a company’s shares shall trade in the Relevant Currency specified in the List of Contract Details. Bids and offers shall be quoted in the Relevant Currency per share, as the case may require, and prices shall be a whole number multiple of the minimum price fluctuation, as specified in the List of Contract Details. |
| Contract Modifications |
The terms and conditions under which trading in each contract month shall be conducted shall be fixed as of the day trading in each contract month commences. However, any change in instructions, order, ruling, directive or law issued or enacted by any court or agency of the Government of Zambia that conflicts with the rules contained in this chapter shall take precedence, immediately become a part of these rules, and be effective for all currently listed and newly listed contract months. |
| Force Majeure |
If strike, fire, accident, equipment malfunction or act of God results in a cessation of trading on the Exchange, or inability of a trader to communicate with the Exchange, the settlement price for all outstanding contracts each day shall continue to be the cash settlement price determined as specified in this chapter. For all purposes, all positions will remain open and subject to the current cash settlement procedures specified in these rules until settled. |
