Futures Close Out

Delivery, Exercise and Corporate Actions

POLICIES AND INSTRUCTIONS

Delivery, Exercise and Corporate Actions

Futures Close-Out Policy

IBKR does not allow the making or taking delivery of certain futures contracts settled by physical delivery of the underlying commodity. Such contracts are subject to a close-out period1. A close-out period is a set duration of time preceding the expiration date of a contract during which IBKR may, without additional prior notification, liquidate the position in the expiring contract.

The account holder is responsible for being aware of the close-out deadline for each product.

To avoid being subject to liquidation, making/taking delivery in the affected expiring futures contracts, or responsibility for the additional fees associated with delivery, clients must close out the positions or roll the positions forward before the Close-Out Deadline.

As an exception to the general close-out policy, IBKR may, under certain circumstances, permit a client to request physical delivery settlement of certain COMEX precious metals futures. Please see the Precious Metals Physical Delivery webpage for more information. Additionally, certain currency futures1 are excepted from the rule, providing some flexibility within the policy.

Please refer to the following table for detailed information on the relevant close-out deadlines for futures contracts.

Exchange Trading Class Contract Month Description Applicable to Cash/IRA Accounts Only Start of Close-Out Period 2 Long Futures Cutoff 3 Long Futures Liquidation 5 Short Futures Cutoff 4 Short Futures Liquidation 5
Disclosures
  1. Physical Delivery rules for this contract are applicable to Cash/IRA accounts only.
  2. Open positions held after the close of the trading day indicated in this field become subject to liquidation.
  3. First Position Date and Time; cutoff applicable to long positions.
  4. Last Trading Date and Time; cutoff applicable to short positions.
  5. The times listed in "Long Futures Liquidation" and "Short Futures Liquidation" columns are shown in local exchange time.

Futures Physical Delivery Example


Example:

Trader A is holding a long position in December 2012 Corn Futures (ZC).
Trader B is holding a short position in the same contract.

Exchange Trading Class Contract Month Description Applicable to Cash/IRA Accounts Only Start of Close-Out Period 2 Long Futures Cutoff 3 Long Futures Liquidation Short Futures Cutoff 4 Short Futures Liquidation
ECBOT ZC 201212 CORN FUTURES NO 1 business day prior to cutoff 20121129
13:15 (CT)		 20121129
9:30 (CT)		 20121214
12:00 (CT)		 20121214
9:30 (CT)

Trader A would have to close the long position by the end of the regular trading session on 2012/11/28 (one business day prior to the long futures cutoff date of 2012/11/29). Open long positions would be subject to liquidation beginning 2012/11/29 09:30 CST.

Trader B would have to close the short position by the end of the regular trading session on 20121213 (one business day prior to the short futures cutoff date of 2012/12/14). Open short positions would be subject to liquidation beginning 2012/12/14 at 09:30 CST.

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