What Is a First Notice Day?

The first notice day is the first trading day of the futures trading delivery month. Starting from this day, the buyer will receive a delivery or bid opening notice at any time, the buyer will pay the contract payment according to the contract, and receive the relevant goods in the amount and type specified in the contract. In some exchanges, buyers and sellers or any of the parties deliver on any day during the delivery month. If the buyer is eager to receive the goods on the first notice day, it may cause the seller to rush to liquidate and increase the price. On the other hand, if the buyer is eager to deliver the goods on the first notice day, it may cause the buyer to rush back and drop the price. . ^[1]

First notice day

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The first notice day is the first trading day of the futures trading delivery month. Starting from this day, the buyer will receive a delivery or bid opening notice at any time, the buyer will pay the contract payment according to the contract, and receive the relevant goods in the amount and type specified in the contract. In some exchanges, buyers and sellers or any of the parties deliver on any day during the delivery month. If the buyer is eager to receive the goods on the first notice day, it may cause the seller to rush to liquidate and increase the price. On the other hand, if the buyer is eager to deliver the goods on the first notice day, it may cause the buyer to rush back and drop the price. . ^[1]

set up

According to the different provisions of the futures exchange (clearing house) on the physical delivery procedures, there are two types of the first notice day:

The first is for delivery procedures where transfer notices are transferable. For example, on the Chicago Futures Exchange, the first notice day is usually the next trading day after the trading day, which is the first time that the exchange (clearing house) finds open traders and sends a delivery notice to the buyer and seller day. If the buyer who received the delivery notice does not want to actually buy the spot, he can also resell the received delivery notice to other traders before the final delivery date.

The second is set for delivery procedures where the delivery notice is not transferable. According to this setting, the first notice day is generally a few days before the last trading day, and that day is the exchange (clearing house) reminding traders that if they do not plan to close their positions before the last trading day, they should do well. The first day of payment delivery spot preparation. In China, the provisions of the Shanghai Financial Exchange on the first notice day belong to the second case.