"It must be clear that the SEC does not allow the registration of foreign exchange, commodity futures contract
, CDFs and other similar derivatives nor their brokers as the pertinent rules governing these securities remain suspended pursuant to Rule 11 of 2015 Implementing Rules and Regulations of the Securities Regulation Code," the SEC said in its advisory.
When you purchase a commodity futures contract
, you are buying the actual commodity at a predetermined price and will take delivery when the contract expires.
A securities futures contract will generally not be treated as a commodity futures contract
for purposes of the Internal Revenue Code (an exception exists for dealer securities futures contracts).
Put differently, although the speculator may buy, he is almost invariably a seller when a commodity futures contract
Spot Return: price return on specified commodity futures contracts
While the spot price for the specific lumber commodity traded by the futures contract is not available from any source, the settle price on the date of maturity of a commodity futures contracts
is expected to converge to the spot price of the commodity as some futures contracts result in physical delivery.
It invests directly in a portfolio of exchange-traded commodity futures contracts
that represent the main commodity sectors and are among the traded futures contracts in the global commodity markets.
"The S&P GSCI, which tracks a basket of 24 leading commodity futures contracts
, spread across energy, metals and agricultural products, had returned 5.4 per cent at the end of H1, helped by the rally in oil prices from their Q1 troughs and an end of session spike in agriculture prices.
Last year, the KRX announced a memorandum of understanding with the Dubai Mercantile Exchange, the largest energy futures and commodities exchange in the Middle East, to develop a trading ecosystem for commodity futures contracts
, in particular for crude oil.
Traditionally, managed futures strategies have been associated with commodity trading advisors using trend-following systems to trade commodity futures contracts
. However, there is also a niche of managed futures funds employing counter-trend trading models to trade a broad range of futures markets.
The latter will involve paying conversion fee, octroi, value-added tax and depository charges.The NSEL has also suspended trading in e-series contracts till further notice after the Forward Markets Commission, or FMC, banned new commodity futures contracts
due to alleged violation of norms.