Shipping Certificate


DEFINITION of 'Shipping Certificate'

An instrument used by futures exchanges as a negotiable commitment by an approved delivery facility to transfer the underlying commodity to the holder of the certificate under the prescribed terms.

BREAKING DOWN 'Shipping Certificate'

A shipping certificate is unique because it doesn't necessarily require the approved facility to actually store the deliverable. The obligation can be met through current or future production of the commodity.

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  2. Commodity

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  3. Approved Delivery Facility

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  4. Warehouse Receipt

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  5. Vault Receipt

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  6. Underlying

    1. In derivatives, the security that must be delivered when a ...
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