· EFP Exchange of Futures for Physical
· EFS Exchange of Futures for Swaps
· ADP Alternative Delivery Procedures

The constraints and limitations of Exchange delivery procedures provide fertile territory for willing buyers and sellers to enter into alternate arrangements to take and make delivery of the underlying. This facility will be as important in LME Steel Futures as it is in other Exchange environments. Familiarity with the usage and scope of such tools as EFPs, EFSs, and ADPs will be essential for steel trade and industry to appreciate the versatility and applicability of the various derivative instruments, and to tailor solutions that suit the individual needs of physical market participants.

Fortunately none of these tools is complex. Once the basic concepts of futures have been grasped, one can quickly come to terms with EFPs, EFSs, and ADPs. But a review of any glossary of terms, set of EFP examples, or Exchange definitions, will often leave those new to Exchange trading unclear as to their scope, function, and how to use them.

At Steel Derivatives we have developed a set of examples to assist you with your understanding. Its typical of our work in helping to truly explain topics, so that you indeed do understand them.

Click to read EFP examples
· EFP to directly swap futures for physical
· EFP to open a futures position
· EFP to close a futures position