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AMI 6.3.2

(1) An Exchange must ensure that the Derivative contracts traded on its facilities:
(a) have a design that enables the orderly pricing and effective settlement of the obligations arising under the contract; and
(b) where they are Commodity Derivative contracts which require physical delivery, have terms and conditions which:
(i) promote price discovery of the underlying commodity;
(ii) ensure, to the extent possible, that there is a correlation to the operation of the physical market in the underlying commodity;
(iii) include contract delivery specifications which address matters specified in App 3; and
(iv) provide for legally enforceable settlement and delivery procedures.
(2) For the purposes of meeting the requirement in (1)(a), an Exchange must include in its Business Rules contract design specifications relating to Derivative contracts traded on its facilities which, at a minimum, include:
(a) minimum price fluctuations (price ticks);
(b) maximum price fluctuations (daily price limits), if any;
(c) last trading day;
(d) settlement or delivery procedures as applicable;
(e) trading months;
(f) position limits, if any;
(g) reportable levels; and
(h) trading hours.
Derived from RM118/2013 [VER15/07-13]