Future Market

The Futures Market at IIBX is designed to facilitate efficient price discovery, market participation and risk management through standardized exchange-traded contracts.
The market framework enables participants to manage exposure and plan transactions using standardized contract structures supported by exchange infrastructure and defined settlement processes.
IIBX Futures contracts are designed to provide flexibility by supporting multiple settlement methodologies aligned to participant requirements.

Objectives of Futures Market

Efficient Price Discovery : Support transparent market-driven pricing.
Risk Management : Enable participants to manage price exposure.
Market Efficiency : Improve liquidity and market participation.
Standardized Trading Environment : Provide uniform contract and settlement processes.

Trading Workflow

Futures Trading at IIBX follows a structured lifecycle designed to facilitate efficient execution, transparent price discovery, robust risk management and orderly settlement.
The trading workflow integrates participant access, order execution, margin management, clearing and settlement into a controlled exchange environment.

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Order Types

IIBX Futures Market supports multiple order types and order retention instructions to facilitate efficient execution, trading flexibility and orderly market operations.
Participants may select appropriate order parameters based on execution objectives and trading strategies.

Order Types

Limit Order : A Limit Order enables participants to specify the maximum purchase price or minimum sale price for execution.
Orders are executed only at the specified price or at a more favourable price available in the market.
Suitable for: Controlled price execution.

Market Order : A Market Order is executed immediately at the best available market price at the time of order execution.
Execution priority is based on available market liquidity.
Suitable for: Immediate execution.

Immediate or Cancel (IOC) Order : An Immediate or Cancel (IOC) Order attempts immediate execution upon order submission.
Any portion that cannot be executed immediately is automatically cancelled.
Suitable for: Immediate execution without retaining unexecuted quantity.

Stop Loss Order : A Stop Loss Order allows participants to define a trigger price for order activation.
Once the trigger condition is met, the order becomes active in the market in accordance with applicable order parameters.
Suitable for: Position protection and risk management.

Order Retention Instructions
Order retention determines the duration for which an order remains active in the trading system.

GFD — Good for Day : The order remains active for the trading session and expires automatically at market close if not executed.

GTD — Good Till Date : The order remains active until the specified validity date unless executed or cancelled.

GTC — Good Till Cancelled : The order remains active until executed, cancelled by the participant or expired under applicable Exchange rules.

IOC — Immediate or Cancel : The order is executed immediately to the extent possible and any unexecuted quantity is cancelled.

Execution Principles
Orders are processed in accordance with applicable Exchange rules and operational parameters, generally considering:
    •   Price Priority
    •   Time Priority
    •   Order Validity
    •   Risk Controls

Settlement Framework

Settlement methodology shall be governed by contract specifications and applicable market rules.
Settlement may involve:
    •   Position settlement
    •   Obligation settlement
    •   Delivery settlement (where applicable)

Settlement Models

Settlement Options for Futures Contracts
Futures contracts at IIBX may provide either of the following settlement mechanisms, depending upon applicable contract specifications.

Cash Settlement
Under cash settlement, open positions are settled financially without transfer of physical bullion.
Settlement obligations are determined based on the applicable settlement methodology and completed through financial settlement procedures.
Key Features
    •   inancial settlement of obligations
    •   No physical delivery requirement
    •   Efficient contract completion

Delivery Settlement
Under delivery settlement, contracts are settled through transfer of underlying bullion in accordance with contract specifications and Exchange procedures.
Unlike conventional delivery frameworks that rely only on delivery intention, IIBX adopts a structured market-driven delivery allocation approach.

Delivery Fremework

Delivery Through Intention and Premium / Discount Matching
For contracts eligible for delivery settlement, participants may indicate their intention to either give delivery or take delivery.
Physical delivery is facilitated through a two-stage matching process.

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