Physical Delivery of COMEX Precious Metals Futures

Overview: 

About Physical Delivery of COMEX Precious Metals Futures

Clients of IBLLC will be able to make and take delivery of COMEX Precious Metals Futures, specifically Gold (GC), Silver (SI) and the corresponding micro contracts for Gold (MGC) and Silver (SIL).

Physical delivery, in this context, is represented by the delivery-versus-payment of a registered electronic warrant or an Accumulated Certificate of Exchange (“ACE”) for each full size or E-micro futures contract.

 

About Gold and Silver Warrants

  • Each Gold (GC) and Silver (SI) future will deliver one warrant representing deliverable grade gold or silver associated with the contract unit.
    • Gold (GC): one hundred (100) troy ounces of gold with a weight tolerance of 5% either higher or lower with a minimum of 995 fineness. Additional information is available via COMEX Rulebook Chapter 113.
    • Silver (SI): five thousand (5,000) troy ounces of silver with a weight tolerance of 10% either higher or lower with a minimum of 999 fineness. Additional information is available via COMEX Rulebook Chapter 112.
  • Warrants are electronic documents that are issued by COMEX approved depositories.
  • Each warrant is registered at COMEX and linked to specific deliverable grade bars with identifiable and unique warrant numbers traceable to each COMEX depository.
  • Warrants will be registered to Interactive Brokers as the COMEX Clearing Member.
  • Storage fees apply.
  • Clients will see warrants in their "U" accounts:
    • The symbol will contain the unique certificate number for the registered warrant.
    • The quantity will always be 1.
    • The net weight and fineness of the bars associated to the warrant will be visible. Below is an example of a client statement.

Example of a Client Statement

 

About Accumulated Certificate of Exchange (“ACE”)

  • Micro Gold and Silver contracts deliver an Accumulated Certificate of Exchange (“ACE”), issued by the Clearing House.
    • Micro Gold (MGC): An ACE represents a 10% ownership in a 100-troy ounce gold bar held in the form of a Warrant. Additional information is available via COMEX Rulebook Chapter 120.
    • Micro Silver (SIL): An ACE represents a 20% ownership in a 5000-troy ounce silver bar held in the form of a Warrant. Additional information is available via COMEX Rulebook Chapter 121.
  • Warrants can be converted to ACES.
  • ACES can be redeemed for warrants once the correct multiples are accumulated (10 for gold and 5 for silver).
  • Storage fees apply.

 

About Delivery Intents

In order to take or make delivery, an intent must be entered for the corresponding future. In the absence of an intent, futures positions will be subject to the relevant delivery period restrictions and positions may be liquidated. Refer to the delivery period liquidation schedule.

  • Long Futures – Intent to Receive must be entered, for the corresponding number of long futures, a minimum of 2 business days prior to First Position Date of the corresponding delivery month. Clients can also enter Intents to Receive during the delivery period in order to place a buy order on a future in the current delivery month.
    • Intent to Receive orders will be accepted only if the account has sufficient funds to take delivery of the declared amount of warrants. If there are insufficient funds, Intent to Receive orders will be rejected.
  • Short Futures – Intent to Deliver must be entered for the corresponding number of short futures, a minimum 2 business days prior to the Last Trade Date of the corresponding delivery month. Clients can also enter Intents to Receive on the day preceding Last Trade Date, and Last Trade Date, in order to place a sell order on a future in the current delivery month.
    • Intent to Deliver orders will be accepted only if the account has a sufficient number of warrant/ACE certificates to satisfy the delivery. If there are insufficient certificates, Intent to Deliver orders will be rejected.

 

Placing Delivery Intents

  • To access the Physical Delivery tool from Trader Workstation (TWS):
    • Right click on the eligible futures contract > Delivery OR
    • Select Trade > Physical Delivery
  • To access the Physical Delivery tool from Client Portal:
    • Tap an eligible futures contract > Your Position > Row Action button (3 dots at end) > Delivery
    • From the Positions page, tap the Row Action (3 dots at end) > Delivery
  • IBKR Mobile App:
    • Navigate to Main Menu > Trade > Delivery
    • Tap an eligible futures contract to open the Contract Details > Positions > Delivery tool

To declare your intent for these precious metals you must follow one of the workflows below:

Intent to Receive
Submitting intent to receive not only indicates the desire to take delivery of the product at the end of the delivery window (in the form of a certified Warrant or ACE), it is also REQUIRED to open new Futures positions during the delivery window (i.e. it is not possible to open a physically deliverable futures position, during the delivery window, without first submitting the Intent to Receive for that Future).

Any Intents to Receive that do not have a corresponding Futures position at the end of the delivery window will be cancelled.

Intent to Deliver
Submitting intent to deliver indicates the desire to make delivery of a product (e.g. Warrant or ACE).  It is also REQUIRED that the account is both short an eligible Future position and has the corresponding certificate to provide.

Any Intents to Deliver that do not have corresponding Future positions at the end of the delivery window will be canceled.

Request to Deliver
Submitting a request to deliver is ONLY available during the delivery window and indicates a desire to deliver the product that day (instead of at the end of the delivery window, as with the intent to deliver). It is REQUIRED that to submit this request an account must have an existing, eligible product (e.g. Warrant or ACE) and corresponding short Future position (e.g. GC, MGC etc.).