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INE:Relevant Issues on the Listing and Trading of INE Bonded Copper Futures Contracts

 The China Securities Regulatory Commission has approved the Shanghai International Energy Exchange (“INE”) to list bonded copper futures contracts. The relevant issues on the listing and trading of INE bonded copper futures contracts are as follows:

1. Listing Date

Bonded copper futures contracts will be listed and traded on November 19, 2020. The market will open at 09:00 a.m. after a central auction session from 08:55 a.m. to 09:00 a.m.

2. Trading Hours

09:00 a.m. to 10:15 a.m., 10:30 a.m. to 11:30 a.m., and 01:30 p.m. to 03:00 p.m., Monday to Friday.

Continuous trading hours: 09:00 p.m. to 01:00 a.m., Monday to Friday.

There is no continuous trading session on the business day (excluding weekends) preceding a national holiday.

3. Listing Contracts and Listing Price

The listing contracts are BC2103, BC2104, BC2105, BC2106, BC2107, BC2108, BC2109, BC2110, and BC2111, and the listing benchmark price is RMB 47680 yuan/metric ton.

4. Margin Requirement and Price Limit

The trading margin for each contract is 8% of the contract value, and the price limit is ±6% or, on the first trading day, twice of that.

An Overseas Special Non-Brokerage Participant or an overseas client may use acceptable foreign exchange as margin. In this case, the current-day CNY Central Parity Rate published by the China Foreign Exchange Trade System (“CFETS”) should be used as the benchmark price for calculating the market value of the foreign exchange. Currently, INE accepts US Dollar as foreign currency collateral with a haircut of 5%.

Before market close of the day, the market value of foreign exchange should be calculated based on the CFETS CNY Central Parity Rate published on the previous trading day. At daily clearing, INE should update the benchmark price of the foreign exchange collateral using the above method and adjust the value after haircut.

5. Release of Open Interests

When the open interests of a bonded copper futures contract after market close reach 15,000 lots (single-counted), INE will publish the trading volumes, long and short positions of each of the top 20 Futures Firm Members and Overseas Special Brokerage Participants in that contract.

6. Transaction Fee

0.001% of the turnover, which is waived for closing out the position opened on the same day.

7. Contract Specification

 

Copper Cathode Futures Contract of Shanghai International Energy Exchange

Product

Copper cathode

Contract Size

5 metric tons (MT)/lot

Price Quotation

Yuan (RMB) /MT (exclusive of tax and customs duty)

Minimum Price Fluctuation

10 Yuan/metric ton

Daily Price Limit

Within ±3% of the settlement price of the preceding trading day

Listed Contracts

January, February, March, April, May, June, July, August, September, October, November, and December

Trading Hours

9:00–11:30 a.m., 1:30–3:00 p.m., and other trading hours prescribed by Shanghai International Energy Exchange (INE)

Last Trading Day

The fifteenth day of the delivery month (postponed accordingly if it is a national holiday or weekend. INE reserves the right to adjust the last trading day based on national holidays and weekends.)

Delivery Period

Five consecutive trading days after the last trading day

Grades and Quality Specifications

Copper cathodes meeting the standards for Grade A copper (Cu-CATH-1) under GB/T 467-2010 or Cu-CATH-1 under BS EN 1978:1998.

Delivery Venue

Delivery venue designated by INE

Minimum Trading Margin

5% of contract value

Settlement Type

Physical delivery

Product Symbol

BC

Listing Exchange

Shanghai International Energy Exchange (INE)




For China derivatives market access and more market information please contact sherry_ustc@163.com

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