Shanghai International Energy Exchange has released its Circular on the Listing and Trading of Bonded Copper Futures Contracts as follows: 

The China Securities Regulatory Commission has approved the Shanghai International Energy Exchange (“INE”) to list bonded copper futures contracts. In accordance with applicable rules of INE, INE hereby notifies the relevant matters:

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

BC2103, BC2104, BC2105, BC2106, BC2107, BC2108, BC2109, BC2110 and BC2111.

4. Listing Price

The listing price will be released by INE on the trading day preceding the listing day.

5. 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.

6. 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.

7. Transaction Fee

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

All parties concerned should get prepared for the listing of bonded copper futures contracts and improve risk management to ensure the smooth functioning of the market.

Shanghai International Energy Exchange
November 11, 2020