first notice day

first notice day definition - finance
In the futures or options market, the first day that the clearinghouse notifies its members of delivery allocations, which are dictated by the futures contracts that it holds. If positions on the futures or options exchange arenÂ’t closed out before expiration, then the contract holder risks having to fulfill the terms of the contract by either delivering or buying the underlying commodity.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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