Futures Close Out
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.
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
- Physical Delivery rules for this contract are applicable to Cash/IRA accounts only.
- Open positions held after the close of the trading day indicated in this field become subject to liquidation.
- First Position Date and Time; cutoff applicable to long positions.
- Last Trading Date and Time; cutoff applicable to short positions.
- 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.