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Exchanges Notice on Trading Arrangements and Adjustments to Price Limits and Trading Margins during 2021 New Year’s Day Holidays in China

 l  Trading Arrangements

The Exchange trading arrangements and adjustments to price limits and trading margins for the 2021 New Year’s Day Holidays are as follows:

There is no continuous trading (night session) on the night of December 31, 2020.

The market will be closed from January 1, 2021 to January 3, 2021.

The market will resume trading on January 4, 2021 with the central auction session from 8:55 a.m. to 9:00 a.m..

 

l  Adjustments to Price Limits and Trading Margins (DCE, SHFE, CFFEX)

DCE

From the settlement on December 30 (Wednesday), 2020:

Iron Ore: the speculation trading margins will be adjusted from 11% to 12% (the speculation margin of contract I2105 will remain 15% unchanged), the price limits and hedging trading margins will remain 10% unchanged;

Coke and Coking Coal: the price limits will be adjusted from 8% to 10%, the hedging trading margins and speculation trading margins will be adjusted from 8% and 9% to 10% and 11%, respectively;

No.1 Soybean: the speculation trading margins will be adjusted from 10% to 12%, the price limits and hedging trading margins will remain 8% unchanged;

RBD Palm Olein: the speculation trading margins will be adjusted from 9% to 10%, the price limits and hedging trading margins will remain 8% unchanged;

Corn: the price limits and speculation trading margins will be adjusted from 6% and 8% to 7% and 9%, respectively, and the hedging trading margins will remain 7% unchanged;

Egg: the price limits will be adjusted from 6% to 8%, the hedging trading margins and speculation trading margins will be adjusted from 6% and 7% to 8% and 9%, respectively;

Other Products: the price limits and the trading margins will remain unchanged.

After the trading is resumed on January 4 (Monday), 2021, the price limits and the trading margins of Iron Ore, Coke, Coking Coal, No.1 Soybean, RBD Palm Olein, Corn and Egg will remain unchanged as the same standards during the New Year’s Day holidays; the price limits and the trading margins of other futures will remain unchanged.

 

Sheet: Adjustments of Risk Parameters of Futures Products of DCE During and After New Year’s Day Holidays

Product

Present

During the Holidays

After the Holidays

Price Limit

Trading Margin

Price Limit

Trading Margin

Price Limit

Trading Margin

Speculation

Hedging

Speculation

Hedging

Speculation

Hedging

Iron Ore

10%

11%

10%

10%

12%

10%

10%

12%

10%

Coke

8%

9%

8%

10%

11%

10%

10%

11%

10%

Coking Coal

8%

9%

8%

10%

11%

10%

10%

11%

10%

No.1 Soybean

8%

10%

8%

8%

12%

8%

8%

12%

8%

No.2 Soybean

8%

9%

8%

8%

9%

8%

8%

9%

8%

Soybean Meal

7%

8%

7%

7%

8%

7%

7%

8%

7%

Soybean Oil

7%

8%

7%

7%

8%

7%

7%

8%

7%

RBD Palm Olein

8%

9%

8%

8%

10%

8%

8%

10%

8%

Corn

6%

8%

7%

7%

9%

7%

7%

9%

7%

Corn Starch

6%

7%

6%

6%

7%

6%

6%

7%

6%

Polished Round-grained Rice

5%

6%

5%

5%

6%

5%

5%

6%

5%

Egg

6%

7%

6%

8%

9%

8%

8%

9%

8%

LLDPE

9%

11%

9%

9%

11%

9%

9%

11%

9%

PP

9%

11%

9%

9%

11%

9%

9%

11%

9%

PVC

8%

9%

8%

8%

9%

8%

8%

9%

8%

Ethylene Glycol

9%

11%

9%

9%

11%

9%

9%

11%

9%

Ethenylbenzene

11%

12%

11%

11%

12%

11%

11%

12%

11%

LPG

10%

11%

10%

10%

11%

10%

10%

11%

10%

Fiberboard

5%

10%

10%

5%

10%

10%

5%

10%

10%

Blockboard

5%

40%

40%

5%

40%

40%

5%

40%

40%

If the above adjusted price limits and trading margins are not consistent with the existing ones, the higher one of the two shall prevail.

As the 2021 New Year’s Day holidays are coming and large fluctuations have been recorded in the market recently, all members are required to send risk alerts to the clients and intensify the prevention of market risks, so as to ensure the smooth market operation.

 

SHFE

As from the first trading day without the Limit-locked market from December 30 (Wednesday), 2020, SHFE will adjust the trading margin ratio and the price limits for the contracts listed below when the daily clearing process begins:

Steel Rebar, Wire Rod, Hot-rolled Coil and Stainless Steel: the trading margin ratio will be adjusted to 9%, and the price limit will be adjusted to 7%.

In the case that the above adjusted trading margin rate and price limit vary from the current ones, the higher ones will prevail.

The market will resume trading on January 4, 2021. As from the first trading day without the Limit-locked market, SHFE will adjust the trading margin ratio and the price limits for the contracts listed below when the daily clearing process begins:

The trading margin ratio and price limit for all futures contracts will be resumed to original level.

Please refer to the Risk Management Rules of the Shanghai Futures Exchange for implementing other provisions concerning the trading margin and the price limit.

Product

Price Limit (%)

Trading Margin Ratio (%)

Before

During

After

Before

During

After

Steel Rebar

5

7

5

7

9

7

Wire Rod

5

7

5

7

9

7

Hot-rolled Coil

5

7

5

7

9

7

Stainless Steel

5

7

5

7

9

7

 

CFFEX

From the settlement on December 30, 2020(Wednesday), the trading margin of CSI 300 index futures and SSE 50 index futures will be adjusted to 12%; and the trading margin of CSI 500 index futures will be adjusted to 14%;

The margin adjustment factor of CSI 300 index options will be adjusted according to the trading margin of index futures.


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

 

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