The physical delivery system refers to the behavior of the buyers and sellers of futures contracts to close the positions of the expired open contracts by transferring the ownership of the subject matter of futures contracts in accordance with the rules and procedures formulated by the exchange. The general procedure of physical delivery is: the seller transports the goods to the warehouse designated by the exchange within the time limit specified by the exchange, and the warehouse issues a warehouse receipt after acceptance, which becomes a valid warehouse receipt after registration by the exchange, or can directly purchase a valid warehouse receipt in the market; After entering the delivery period, the seller submits a valid warehouse receipt, and the buyer submits the payment and goes through the delivery formalities at the exchange. Commodity futures trading generally adopts the way of physical delivery.

Physical delivery system generally has the following provisions:

1. Standard warehouse receipt. Standard warehouse receipt is a kind of physical delivery certificate issued by the exchange to the seller of goods, which is designated for delivery by the exchange after the purchase acceptance is completed and confirmed to be qualified. The standard warehouse receipt is valid after being registered by the exchange. The standard warehouse receipt shall be registered, and the legal holder of the standard warehouse receipt shall properly keep the standard warehouse receipt. The generation of standard warehouse receipt usually needs to go through warehousing prediction, commodity warehousing, acceptance, distribution, designated delivery warehouse registration and other links.

2. Fixed-point delivery. The consignor of the goods must deliver the delivered goods to the designated delivery warehouse according to the regulations. Generally speaking, physical delivery is carried out in the delivery warehouse designated by the exchange.

3. Delivery of warehouse receipts. The seller delivers the goods to the valid standard warehouse, and the buyer pays. The seller can only get the payment after delivering a valid standard warehouse receipt; The buyer can only pay first, then have the warehouse receipt and pick up the goods at the designated delivery warehouse.

4. Warehouse management. The management of the delivered goods in the delivery warehouse has the following points:

(1) Commodity inspection and warehouse receipt issuance.

(2) Management of delivery reserve commodities.

(3) Providing support services to customers and assisting in arranging the transportation of delivered goods.

5. Transfer of warehouse receipts. Standard warehouse receipts can be transferred according to the provisions of the exchange. The application for transfer shall be declared in writing by the member unit to the Exchange, indicating the quantity, unit price, customer code and name before and after the transfer, and stamped with the official seal of the member unit. The transfer of standard warehouse receipts must be handled by members in the exchange, and the relevant fees must be settled. The exchange will issue a new standard warehouse receipt to the buyer, and the original standard warehouse receipt will be invalid at the same time.

6. Handling of breach of contract. If the seller fails to deliver the valid standard warehouse receipt or the buyer fails to pay the payment or the payment is insufficient within the specified delivery period, it shall be deemed as a breach of contract. The Exchange shall handle the breach of contract in accordance with relevant regulations.