What does Delivery Instrument mean?
A document used to effect delivery on a futures contract, such as a warehouse receipt or shipping certificate. The document entitles the holder of a futures contract, the delivery of the underlying at the time of expiry.
Futures Knowledge Explains Delivery Instrument
The delivery instrument such as a shipping certificate or a warehouse receipt is a transferable document which entitles the holder to delivery of the underlying. It is a proof of ownership rights. Since a futures contract is settled at a future date, it is important to have a valid delivery instrument to lower the risk of non-settlement of the contract.