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Derivatives as a tool for managing risk first originated in the commodities markets. They were then found useful as a hedging tool in financial markets as well. In India, trading in commodity futures has been in existence from the nineteenth Wholesale century with organised trading in cotton through the establishment of Cotton Trade Association in 1875. Over a period of time, other commodities were permitted to be traded in futures exchanges. Regulatory constraints in 1960s resulted in virtual dismantling of the commodities future markets. It is only in the last decade that commodity future exchanges have been actively encouraged. However, the markets have been thin with poor liquidity and have not grown to any significant level. In this chapter we look at how commodity derivatives differ from financial derivatives. We also have a brief look at the global commodity markets and the commodity markets that exist in India.Difference between commodity and financial derivativesThe basic concept of a derivative contract remains the same whether the underlying happens to be a commodity or a financial asset. However there are some features which are very peculiar to commodity derivative markets. In the case of financial derivatives, most of these contracts are cash settled. Even in the case of physical settlement, financial assets are not bulky and do not need special facility for storage. Due to the bulky nature of the underlying assets, physical settlement in commodity derivatives creates the need for warehousing. Similarly, the concept of varying quality of asset does not really exist as far as financial underlyings are concerned. However in the case of commodities, the quality of the asset underlying a contract can vary largely. This becomes an important issue to be managed. We have a brief look at these issues.Physical settlementPhysical settlement involves the physical delivery of the underlying commodity, typically at an accredited warehouse. The seller intending to make delivery would have to take the commodities to the designated warehouse and the buyer intending to take delivery would have to go to the designated warehouse and pick up the commodity. This may sound simple, but the physical settlement of commodities is a complex process. The issues faced in physical settlement are enormous. There are limits on storage facilities in different states. There are Wholesale Electrical Plug Adapters restrictions on interstate movement of commodities. Besides state level octroi and duties have an impact on the cost of movement of goods across locations. The process of taking physical delivery in commodities is quite different from the process of taking physical delivery in financial assets. We take a general overview at the process flow of physical settlement of commodities. Later on we will look into details of how physical settlement happens on the NCDEX.Delivery notice periodUnlike in the case of equity futures, typically a seller of commodity futures has the option to give notice of delivery. This option is given during a period identified as 'delivery notice period'. Such contracts are then assigned to a buyer, in a manner similar to the assignments to a seller in an options market. However what is interesting and different from a typical options exercise is that in the commodities market, both positions can still be closed out before expiry Hangers Accessories of the contract. The intention of this notice is to allow verification of delivery and to give adequate notice to the buyer of a possible requirement to take delivery. These are required by virtue of the fact that the actual physical settlement of commodities requires preparation from both delivering and receiving members.Typically, in all commodity exchanges, delivery notice is required to be supported by a warehouse receipt. The warehouse receipt is the proof for the quantity and quality of commodities being delivered. Some exchanges have certified laboratories for verifying the quality of goods. In these exchanges the seller has to produce a verification report from these laboratories along with delivery notice. Some exchanges like LIFFE, accept warehouse receipts as quality verification documents while others like BMF-Brazil have independent grading and classification agency to verify the quality.In the case of BMF-Brazil a seller typically has to submit the following documents:A declaration verifying that the asset is free of any and all charges, including fiscal debts related to the Wholesale Chargers Batteries stored goods. A provisional delivery order of the good to BM&F (Brazil), issued by the warehouse. A warehouse certificate showing that storage and regular insurance have been paid.AssignmentWhenever delivery notices are given by the seller, the clearing house of the exchange identifies the buyer to whom this notice may be assigned. Exchanges follow different practices for the assignment process. One approach is to display the delivery notice and allow buyers wishing to take delivery to bid for taking delivery. Among the international exchanges, BMF, CBOT and CME display delivery notices. Alternatively, the clearing houses may assign deliveries to buyers on some basis. Exchanges such as COMMEX and the Indian commodities exchanges have adopted this method.

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Floating serenely along the river, intent on getting to where they are going, there are few more captivating sights than watching a swan in motion. And when you think about it, there is a strong parallel between these graceful birds and the way a delivery company goes about its business.That's because all the real work is being done out of sight, with the delivery company's customer only seeing a small part of what makes that business tick. Deliveries and logistics operations are all about what is done out of the customer's Office Accessories sight. The teams of knowledgeable workers who staff the call centres, and are on hand to speak to customers directly or answer their queries online, along with the masses of unsung people who drive the substantial fleets of vehicles which do the d work of collecting and delivering, are the ones which really Wholesale Other Electrical Equipment Tools make the business tick.While everyone sees many lorries, vans and even motorbikes belonging to a delivery company going about their daily business, and barely gives them a second thought, it's quite impressive to think that Wholesale Data Cable Adapter Accs they are just a tiny cog in a very large wheel that is helping keep industry and commerce rolling. Even when we drop a letter into a post box, or leave a parcel at a pre-designated collection point, do we give any thought to how the rest of that item's journey will be conducted? Very likely not, but there is a whole operation going on behind the scenes which has an input into ensuring that a delivery gets to its destination in the shortest possible time, and using the most efficient route possible.The people behind the scenes work to make the jobs of those actually making the deliveries as easy as possible. They will try to ensure that they get accurate details of the pick-up address, where appropriate, the parcel's intended destination, its size and dimensions. These are all used to give the customer as accurate a quote as possible of the cost of the delivery. By also determining exactly how urgent a delivery is, they can also plan its route, using the most cost-effective transport method which will get that delivery completed by any required deadline.So when anyone has to book a courier service to send goods, they are getting several services included in the price the safe and prompt delivery can usually be taken as read, but additional features, such as parcel tracking, and notification of a safe arrival, are also among the jobs for which all those people working quietly behind the scenes are essential.

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We knew there'd be a fight, regardless of whether Melvyn didn't. He wouldn't believe any one disliked him, we could tell that. But Dodge, well, we knew him inside out. Dodge hated his guts already and wanted to punch him one on the nose. And Dodge knew me and Daz and thin too, knew that we were right behind him even though we would not be doing any of the shirt pulling ourselves, which is all fights were in our experience, tugs-o-war, mis-kicks and bungled head-locks. Dodge's specialism, actually. A Boeing 707 flew overhead, so in the silence where fights are made or fell, we all looked up until the sun blinded us. Melvyn took our silence for ignorence and saw his first large chance with words. He'd done the march past with the toys we didn't have, so here came the words we wouldn't know : That's a VC10 he said. Suprisingly, I threw the first stone. Balls, I said, and waited for his comeback. He was not to know my Godfather ran the Robertsbridge Aircraft Recognition Society. We dug up Heinkels and lost Hurricanes on saturdays and went to airshows and recognition competitons. I was it's youngest spotter. Came 26th in the All-England, 120 grown men spotting dots in the sky, flashed on a slide screen for one tenth of a second in Holborn Public Library. But this was the only gaffe Melvyn would make and he did not contradict me or give me a chance to shine. He was clever that way. He just looked Tattoo Supplies down his nose and slit his eyes. Skinny got scared and jumped off the wall, diffusing the instant. 'Ow, me poor feet. 'Ere, show yer where The Cow's Gate is friend ? We're it's Gang, ain't we Daz ? We set off in single file, like the school GPS Accessories bell had pealed at the end of break, reluctant boys, a creeping dustcloud which had no wind to shift it. From the corner skinny pointed up the road too enthusiastically, as if our Mou-vyn might disperse. See where that gate is ? Thass it, our Gang gate. Thass the field in vair. Used to be an 'ouse din there Daz. Weren' authorized in there then were we. Dodge tried provoking things a second time. Gelz still ain' authorized in there. Oo you callin' a gel, Packham ? Not you skinny, 'im ! Vat large twerp, he revealed, jerking a grubby half-nailed thumb at Melvyn who wasn't the least put out, his thumbs tucked in jean pockets like he knew he was the quicker draw. The fight occurred beside our marbles hole under old bag Aida's hedge. Dodge failed to stand any chance. He even looked defeated before the 1st swipe, his bum sticking out of jumble sale hipsters, the bottoms of his Empire Made plimpsoles flapping like jaws, his dish-cloth t-shirt which once asserted Dukhams blobbed with Instant Whip. Melvyn didn't flinch at the challenge, or wait for more provocation, he just stepped forward and squared his fists with army precision learned from his dad with the very punch bag and leather fighting gloves we might seen him carry past us himself. Yes, Melvyn boxed like Cassius Clay and Dodge wrestled like Mick Macmanus. He stoached like a cow in mud attempting to yank a handful of Melvyn's hair or kick him up the butt till Melvyn one-two'd him, nose and courage, and tipped him backwards. Dodge slobbered like a bulldog and Melvyn, with distaste at becoming dirty, without gloves or groundsheet, knelt on Dodge's tit and banged his head up and back down on the marbles hole : Submit ? Submit, you great oaf ? We might never seen anything like it. Me, Daz and skinny were transfixed with fear and grudging admiration. Dodge, up till then our reliable bulldog, was reduced to whimpering : Year, oi submit, submit, y've 'urt me face... His hankie was a ripped square of old bedsheet. He twisted 2 ends and screwed them Nail Polish into bloody nostrils. Melvyn just stood brushing Dodge-matter from his person with still clean hands swiped red at the knuckles. Dodge was a bad loser and only made his ignominy worse. Mummy's boy, he announced in a funny voice. Getcha nex' toime. I am not afraid of you, Packham. You are licked. I'm not scared of you neever, Dodge shouted all the way back from his front gate as Melvyn did a dummy run after him. leap in the lake you fat dunce he roared back. What could we do? Me, Daz and Skinny might have managed to duff him a bit on Dodge’s behalf, but this was Dodge’s blunder, not ours. For the moment Melvyn fooled us. Skinny was in awe, said he’d never seen anyone smack a nose like that. Daz said no one had ever beaten Dodge in a fight ever. I was inclined to friendliness just to have a go on some of his toys. By the end of the afternoon we’d know how things really stood.