Information Regarding Physical Delivery Rules

IB does not have the facilities necessary to accommodate physical delivery.  For futures contracts that are settled by actual physical delivery of the underlying commodity (physical delivery futures), account holders may not make or receive delivery of the underlying commodity.

It is the responsibility of the account holder to make themselves aware of the close-out deadline of each product.  If an account holder has not closed out a position in a physical delivery futures contract by the close-out deadline, IB may, without additional prior notification, liquidate the account holder’s position in the expiring contract.  Please note that liquidations will not otherwise impact working orders; account holders must ensure that open orders to close positions are adjusted for the actual real-time position.

To avoid deliveries in expiring futures contracts, account holders must roll forward or close out positions prior to the Close-Out Deadline. 

Below provides an overview of the relevant close-out deadlines of futures and futures options contracts. This information is also available through Account Management. After accessing Account Management, select the book icon in the upper right of the screen and navigate through Trade > Delivery and Exercise.

The relevant First Notice Date, First Position Date and Last Trading Date information may be obtained through the IB website by navigating to Help and Contacts > Contract Search. Any date information provided is on a best-efforts basis and should be verified by reviewing the contract specifications available on the exchange's website.

 

Summary of Physical Delivery Futures Policies

Contract

Delivery Permitted

Close-Out Deadline

ZB, ZN, ZF (ECBOT)

No

2 hours before the end of open outcry trading on the business day prior to First Notice Day (longs) or Last Trading Day (shorts)

ZT (ECBOT) futures, Japanese Govt Bond Futures (JGB)

No

End of second business day prior to the First Position Day (longs) or end of second business day prior to Last Trading Day (shorts)

EUREXUS futures

No

End of business day prior to the First Position Day (longs) or Last Trading Day (shorts)

EUREXUS 2 yr Jumbo bond (FTN2) and 3 yr bond (FTN3) futures

No

End of the second business day prior to the First Position Day (longs) or Last Trading Day (shorts)

IPE contracts (GAS, NGS)

No

End of the second business day prior to the First Position Day (longs) or day prior to Last Trading Day (shorts)

GLOBEX LIVE CATTLE (LE)

No

End of the second business day prior to the First Intent Day (longs) or Last Trading Day (shorts)

GLOBEX NOK, SEK, PLZ, CZK, ILS, KRW and HUF, and correspondent Euro rates

No

End of the fifth business day prior to the Last Trading Day for both longs and shorts

GBL, GBM, GBS, GBX (Eurex), CONF (SOFFEX)

No

2 hours before the end of trading on the last trading day

GLOBEX currency futures (EUR, GBP, CHF, AUD, CAD, JPY, HKD)

Yes*

Not applicable*

GLOBEX Ethanol futures (ET)

No

End of the fifth business day prior to the First Position Day (longs) or Last Trading Day (shorts)

NG futures (NYMEX) No End of the business day prior to the First Position Day or last trading day (whichever comes first) (longs) or end of business day prior to Last Trading Day (shorts)

All other contracts

No

End of the second business day prior to the sooner of First Position Day or Last Trading Day (longs) or end of the second business day prior to the Last Trading Day (shorts)

*As Cash and IRA accounts are restricted from holding foreign currencies, the liquidation schedule outlined above for All other contracts will also apply to Cash and IRA accounts for these foreign currency products.

Summary of Physical Delivery Future Options Policies

Contract

Delivery Permitted

Close-Out Deadline

OZB, OZN, OZF, OZT (ECBOT)                                               

No

4 hours before the end of open outcry trading on the business day prior to First Notice Day (longs) or Last Trading Day (shorts)

All other contracts

Yes

Options will be allowed to expire into futures (or, if out-of-the-money, expire worthless), if the options expiration date is prior to the underlying futures’ First Position Day. If there is a resulting futures position, it will then be subject to the respective Close-Out Deadlines, as detailed above.