SMX successfully completes first physical delivery against Black Pepper

The Singapore Mercantile Exchange ( SMX) has successfully completed its first physical delivery against the world's first global Black Pepper futures contract.

On the expiry of the April 2012 contract 15 tonnes of Black Pepper meeting the Exchange specifications was delivered on the Exchange.

The contract saw active participation by trading houses from Europe to Asia, and the successful conclusion of the physical delivery was testimony of the confidence these global agri-commodities players placed on the clearing and settlement platform provided by the Exchange and its Clearing Corporation.

The delivery of Black Pepper inspected by SGS Vietnam was made Ex-Approved Bonded Warehouse, C Steinweg in Binh Duong Province Vietnam by the endorsement of Exchange Warrant, post receipt of acknowledgement from the Vietnam Customs on the transfer of ownership of the cargo.

The delivery was carried out in just the second contract cycle since the launch of the contract in February 2012, which in itself is a major achievement for a newly launched contract.

The SMX Black Pepper futures contract specifications was designed through a rigorous consultation process with the physical trading community to cater to the entire supply chain and trading ecosystem including pepper producers, processors, traders, exporters and importers.