Futures First Notice Day vs. Last Trading Day Explained

The CFTC defines First Notice Day as the first day notices of intent to deliver can be received.

CME explains that for physically delivered futures, long positions can begin receiving delivery assignments from First Notice Day.

That means a trader can face delivery-related obligations before the contract reaches its final trading day.

The exact date varies by product and contract month.

Do not assume that holding until Last Trading Day is always safe if you want to avoid delivery.

Last Trading Day is the final day the expiring futures contract can trade at the exchange.

After that point, the contract no longer remains a normal tradable expiry.

Cash-settled contracts typically proceed to their final cash-settlement process.

Physically delivered contracts move through their delivery procedures according to the product rules.

What happens when a futures contract expires explains the broader expiration lifecycle.

This is the practical trap.

For some physically delivered contracts, First Notice Day occurs before Last Trading Day.

Suppose a hypothetical contract has:

A long trader who wants to avoid delivery cannot simply plan to exit on June 19.

Delivery assignment risk can already exist from June 1.

The correct operational exit date can therefore be earlier than LTD.

• First Notice Day: June 1
• Last Trading Day: June 20

A broker may impose its own liquidation or position-reduction deadline before the exchange's official delivery dates.

The broker is managing operational, funding, concentration, and delivery risk.

As a result, the practical date shown in your account may be earlier than the exchange FND or LTD.

Do not rely on a generic exchange calendar alone.

Check both the official contract calendar and the broker's current policy.

First Notice Day is a delivery concept for physically settled contracts.

A cash-settled futures contract does not require the holder to receive or deliver the underlying asset.

Instead, the final contract value is settled in cash under the exchange methodology.

Such contracts still have a Last Trading Day or trading termination point.

Physical delivery versus cash settlement explains the distinction.

Assume you are long 2 contracts.

The price is unchanged from your entry.

FND arrives tomorrow, and your broker requires delivery-risk positions to be closed before today's session ends.

Your market P&L can be approximately zero while your operational risk has become urgent.

That is why expiration management cannot be reduced to price direction alone.

The critical inputs are contract month, settlement type, FND, LTD, broker deadline, and position side.

CME product calendars can include several dates:

Those dates answer different operational questions.

Do not treat the first visible date in a platform as a generic "expiry date."

How to read futures contract specifications explains why contract calendars need field-by-field reading. [!TRYMARK] Build an expiration timeline Pick one physically delivered futures contract month. Record FND, LTD, broker cutoff, first delivery date, and last delivery date. Mark the earliest date that matters if you want zero delivery exposure.

• First Notice Date
• Last Notice Date
• First Delivery Date
• Last Delivery Date
• Last Trade Date
• Settlement Date

Confirm exact product and contract month.

Confirm physical or cash settlement.

Record First Notice Day if applicable.

Record Last Trading Day.

Record first and last delivery dates if applicable.

Check broker-specific liquidation deadlines.

Check time zone and trade-date convention.

Exit or roll before the earliest date relevant to your objective.

Do not rely on a generic "expiration date" label.

This guide explains contract timing, not whether you should hold or roll a position.