On December 22th 2020 (Next Tuesday), in Dalian Commodity Exchange (DCE), there are two important updates will take effect on RBD Palm Olein futures. One is the oversea investors will be allowed to participate RBD Palm Olein futures trading and the other one is DCE will start to charging RBD Palm Olein futures order submission fee market-wide from night session.
We listed some key points for you better understanding relevant issue of those two updates. If you are interested in more details, please feel free to contact us in anytime.
l RBD Palm Olein Internationalization
1. Implement Time
From 9:00 am, December 22, 2020 (GMT+8)
2. Trading Contracts
P2101 and follow-up contracts
3. Contract Specification
Product | RBD Palm Olein |
Trading Unit | 10 MT/Lot |
Price Quote Unit | CNY/MT |
Minimum Tick Size | 2 CNY/MT |
Daily Price Limit Range | 4% of last settlement price |
Contract Months | Jan, Feb, Mar, Apr, May, Jun, Jul, Aug, Sept, Oct, Nov, Dec |
Trading Hours | 9:00 - 11:30 a.m., 1:30 - 3:00 p.m., Beijing Time, Monday to Friday, and other trading hours announced by DCE |
Last Trading Day | The 10th trading day of the contract month |
Last Delivery Day | The 3rd trading day after the last trading day |
Deliverable Grades | RBD Palm Olein Delivery Quality Standard of DCE (F/DCE P002-2011) |
Delivery Point | The delivery warehouses of RBD Palm Olein designated by DCE |
Minimum Trading Margin | 5% of the contract value |
Delivery Form | Physical delivery |
Ticker Symbol | P |
Listed Exchange | DCE |
4. Foreign Currency as Margin
Overseas investors can use RMB, standard warehouse receipt, China’s government bond and foreign currency funds as margins.
At present, USD is the foreign currency that can be used as margins, with a haircut of 5%. Before the market close of each trading day, DCE will use the central parity rate of RMB announced by China Foreign Exchange Trading System (CFETS) on the previous day as the benchmark price to calculate the market value of foreign currency funds. When settling on the then-current day, the central parity rate of RMB on such day announced by CFETS will be used as the benchmark price to adjust the market value and discounted amount of foreign currency funds.
l Order Submission Fee Schedule
1. Implement Time
The trading hour of December 23, 2020 (i.e. the night trading session of December 22 GMT+8).
2. Target for application
All domestic and overseas clients and non-futures company members whose quantity of the concluded contracts for RBD Palm Olein futures on the then-current day exceeds 600 lots and meets the standard of collecting order submission fee.
Market makers are exempt from order submission fee for market-making purpose.
3. Charging Standard
The order submission fee is charged daily, and the specific standards are as follows:
Order Submission Fee = the total lots placed on RBD Palm Olein futures contracts of non-futures company members or clients on the then-current day × the charging standard of the then-current day
Daily Charging Standard | ||
Order to Traded Ratio（OTR）Message count | OTR≤1 | OTR>1 |
Message count≤1000 times | 0 | 0 |
1000 times < Message count≤1500 times | 0 | 0.01 Yuan/lots |
Message count >1500 times | 0.01 Yuan/lots | 0.02 Yuan/lots |
Message Count = number of order placements + number of order cancellations
OTR= ordered volume / traded volume - 1
As for the same client who has several trading codes with different Futures Company Members, or clients and Non-Futures Company Members involving actual control relationship, DCE will calculate their number of order placements, number of order cancellations, ordered volume, cancelled volume, traded volume and other indicators on a consolidated basis.
4. Collection Method
The submission fee shall be deducted from the member’s Clearing Deposit when settling on the then-current day.
For China derivatives market access and more market information please contact sherry_ustc@163.com
Comments
Post a Comment