Comex explained
registered, eligible
In the context of the commodities market, particularly the Commodity Exchange (Comex), the terms "registered" and "eligible" are used to categorize different types of inventory or holdings.
Registered:
This term refers to commodities, usually metals such as gold or silver, that are stored in Comex-approved warehouses and are available for delivery against futures contracts. These commodities have met specific quality standards and are designated as registered because they are registered with the exchange as deliverable against futures contracts.
Eligible:
Eligible refers to commodities that meet the exchange's requirements for quality and specifications but are not currently registered for delivery against futures contracts. They are still stored in Comex-approved warehouses and can potentially be converted to registered status if the owner wishes to use them for delivery.
The distinction between registered and eligible commodities is important for futures market participants. Traders who hold long positions in futures contracts may need to take delivery of the underlying commodity if they choose to exercise their contracts. In that case, they can only receive delivery from registered stocks. On the other hand, eligible stocks can be used to fulfill delivery requirements if they are converted to registered status before the delivery process begins.
It's worth noting that the specific rules and definitions may vary slightly depending on the exchange or market in question. Therefore, it's always a good idea to refer to the specific guidelines and regulations provided by the Comex or the relevant exchange for accurate and up-to-date information.