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Alternative Delivery Procedure (ADP) Definition

Definition

The word alternative shipping procedure describes to some clause emerging at a futures contract which enables a buyer and seller to supply and get the product in a way that deviates from the typical contract stipulations. Once the short and long intervals are fulfilled, an alternate shipping procedure might be redeemed anytime throughout the designated delivery period.

Explanation

If the counter parties into a contract desire to shoot their paired position off the market they might achieve this by stepping an alternative shipping procedure, or ADP. Once agreed , the counter parties will inform their relatives, that are in charge of relaying the information into the centralized clearing counter party. There are no fees related to stepping an ADP. The sole condition involves telling of the deal through members.