DCE: Announcement About Soliciting Public Opinions on Adjusting Iron Ore Futures Position Limits

In order to strengthen the risk management of iron ore futures, Dalian Commodity Exchange (DCE) now solicits public opinions on matters related to position limit adjustment and implementation schedule. The details are as follows:

I. Position limit adjustment of iron ore futures

The position limits of iron ore futures will be adjusted to fixed amount, and two adjustment proposals are as following:

Proposal I: Position Limit Table of Iron Ore Futures (unit: lot)

Trading Period	Non-Futures Company Member	Client
As from the listing of the contract	15,000	15,000
As from the first trading day of the month immediately preceding the delivery month	10,000	10,000
As from the tenth trading day of the month immediately preceding the delivery month	6,000	6,000
In Delivery month	2,000	2,000

Proposal II: Position Limit Table of Iron Ore Futures (unit: lot)

Trading Period	Non-Futures Company Member	Client
As from the listing of the contract	20,000	20,000
As from the first trading day of the month immediately preceding the delivery month	10,000	10,000
As from the tenth trading day of the month immediately preceding the delivery month	6,000	6,000
In Delivery month	2,000	2,000

Meanwhile, the Exchange will stop automatically converting the hedging position amount of the general months or the speculative position limit of the delivery months of iron ore, whichever is lesser, into the hedging position limit increase of the delivery months.

II. Implementation schedule

The implementation schedule of proposed position limit adjustment are as follows:

Proposal I: Implement the adjustment from Contract I2102 and beyond.

Proposal II: Implement the adjustment from Contract I2106 and beyond.

Proposal III: Implement the adjustment from newly listed contract.

Market stakeholders are welcome to provide opinions or suggestions, which can be submitted to DCE through contact emails by December 23, 2020. Please note that your feedback also indicates your consent for your contact information and data to be used by DCE for the sole purpose of soliciting opinions as described in this announcement.

Contacts:

CHEN Zhuo 0411-84808740 chenzhuo@dce.com.cn

DONG Chang 0411-84808127 dongchang@dce.com.cn

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

Comments

A Brief Introduction to the Status of China's Commodity Futures Market

1. Development of China's Commodity Futures Market Since 2010, the Chinese futures market had fast expanded with the launch of financial futures and Exchange-traded options. The derivatives market has entered a stage of comprehensive development from commodity futures to financial futures, from futures to options, from exchange-listed to OTC, and from domestic-investors-only to liberalized foreign investor trading. Currently, China’s domestically listed futures and options cover 7 categories of finance, industrial metals, precious metals, chemicals, energy, black series and agricultural products, with a total of 91 varieties, including 64 commodity futures and 20 commodity futures options. Figure 1 Commodity Futures and Options in China Source: Galaxy Futures 2. Commodity Futures Market 2.1 Market expansion In terms of time, China's commodity futures market has continued to expand steadily, and trading volume, open interest and trading v...

China CSRC Solicits Comments on Draft Trading Server Colocation Rules

On April 21, 2023, the China Securities Regulatory Commission (“CSRC”) issued the Administrative Provisions on Trading Server Colocation for the Securities and Futures Markets (Consultation Paper) (the “Administrative Provisions”). The Administrative Provisions fill a legal gap with respect to securities and futures trading server colocation. It has been common market practice for securities or futures companies to lease cabinets in an exchange or its subsidiary’ data center and sublease it to customers to host their servers, although neither the CSRC nor exchanges have formulated specific regulatory rules on server colocation. The Administrative Provisions are the only administrative departmental rules that directly regulate colocation activities. The promulgation of the Administrative Provisions improves regulations regarding market infrastructures and is conducive to the safe and stable operation of the securities and futures markets. The high-level legal foundatio...

Zhengzhou Commodity Exchange listed sodium hydroxide, p-xylene futures & options on Sep 15th

China's securities regulator said it had approved the registration of caustic soda and xylene futures and options at the Zhengzhou Commodity Exchange on Aug 26th. The China Securities Regulatory Commission urged the Zhengzhou Commodity Exchange to get well prepared across the board, ensuring the smooth launch and sound operation of caustic soda and xylene futures and options. Sodium Hydroxide, P-xylene futures & options had been listed in ZCE on Sep 15th. Detail of Sodium Hydroxide Futures and Options: english.czce.com.cn/en/Products/sodiumHydroxide/H810325index_1.htm Detail of PX Futures and Options: english.czce.com.cn/en/Products/paraxylene/H810324index_1.htm For China derivatives market access and more market information please contact sherry_ustc@163.com For more China derivatives market news please visit FangQuant

Market Bridge Consulting

Search This Blog