Reply To: Futures Cascade

Phil Walsh

Depends on how you define ‘Physical Settlement’, I guess.

If you define ‘Physical Settlement’ as either (a) a derivative transaction that delivers/converts into another transaction or (b) an underlying with a real or notional delivery of a physical commodity, then Endur’s differentiation between physical and cash settlement stands up.

If your definition of Cash Settlement is any contract which itself or the underlying only cash settles, then you need to primarily return the settlement type of the underlying transaction.

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