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Normal Daily Settlement Procedure

London Spot Silver Futures settlement is derived from the COMEX Silver Active Month settlement minus the Inter-Commodity Spread [COMEX (Active Month) Silver vs. London Spot Silver] settlement.  The settlement methodology of these components is as follows:   

 

The COMEX Silver Active Month futures (SI) is settled by CME Group staff based on trading activity on CME Globex between 13:24:00 and 13:25:00 Eastern Time (ET), the settlement period. The active month is the nearest base contract month that is not the current delivery month. The base months for Silver futures are March, May, July, September and December (Active month futures roll schedule below).

 

Tier 1:  If a trade occurs on Globex between 13:24:00 and 13:25:00 ET, the settlement period, then the active month settles to the volume-weighted average price (VWAP), rounded to the nearest $0.001 per troy ounce.

Tier 2:  In the absence of outright trades during the settlement window, the active month settles to the midpoint of the market at 13:25:00 ET – provided that there is a two-sided market (both a bid and ask). 

Tier 3:  In the absence of a two-sided market at 13:25:00 ET, the last trade price (or prior settlement) in the active month is checked against any one-sided markets.

  1. If the last trade price (or prior settlement in the case of no trades during the trade date) is below an active bid at 13:25:00 ET, then the contract settles to that respective bid price. If the last trade price (or prior settlement in the case of no trades during the trade date) is above an active ask at 13:25:00 ET, then the contract settles to that respective ask price.
  2. If there are no active bids or asks at 13:25:00 ET, then the contract settles to the last trade price (or prior settlement in the case of no trades during the trade date).

 

 

 

 

The Inter-Commodity Spread [COMEX (Active Month) vs. London Spot Silver] is settled by CME Group staff based on trading activity on CME Globex between 13:24:00 and 13:25:00 Eastern Time (ET), the settlement period.

 

Tier 1:   If a trade(s) occurs on Globex between 13:24:00 and 13:25:00 ET, the settlement period, then the     Inter-Commodity spread settles to the volume-weighted average price (VWAP), rounded to the nearest tradable tick.

Tier 2:   In the absence of outright trades during the settlement window, the Inter-Commodity spread settles to the midpoint of the market at 13:25:00 ET – provided that there is a two-sided market (both a bid and ask).

Tier 3:   In the absence of a two-sided market at 13:25:00 ET, the last trade price (or prior settlement) in the Inter-Commodity spread is checked against any one-sided markets.

  1. If the last trade price (or prior settlement in the case of no trades during the trade date) is below an active bid at 13:25:00 ET, then the contract settles to that respective bid price. If the last trade price (or prior settlement in the case of no trades during the trade date) is above an active ask at 13:25:00 ET, then the contract settles to that respective ask price.
  2. If there are no active bids or asks at 13:25:00 ET, then the contract settles to the last trade price (or prior settlement in the case of no trades during the trade date).


Silver futures active month roll schedule

 

 

Last notice day for:

New spot month:

New active month:

February (G)

March (H)

May (K)

April (J)

May (K)

July (N)

June (M)

July (N)

September (U)

August (Q)

September (U)

December (Z)

November (X)

December (Z)

March (H)

 

 

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Settlement Disclaimer and Contact
Settlement Disclaimer and Contact