FROM: Shanghai Futures Exchange

TO: All Members

SUBJECT: Notice on Market Risk Control during Dragon Boat Festival 2017

According to the Announcement by the Exchange on Trading Schedule during Dragon Boat Festival for 2017, the Exchange’s futures markets will be closed from May 28 through May 30. According to the Risk Management Rules of Shanghai Futures Exchange, we decide to adjust the trading margin requirements and price limits for some products around Dragon Boat Festival.  

I. In the absence of a limit-locked market on May 26, 2017, the trading margin requirements as from the market close and settlement on that day and the price limits as for the following trading day will be adjusted as follows:  

For futures contracts on natural rubber and rebar, the trading margin requirements rise from 9% to 10%, and their price limits from 7% to 8%;

Trading margin requirements and price limits of other futures products of the Exchange still follow current trading rules.

II. When the trading resumes on May 31, 2017, the trading margin requirements as from the market close of the first trading day with the absence of price limits and price limits requirements as from the following trading day will be as follows:

For futures contracts on zinc, lead, nickel, hot rolled coil and bitumen, the trading margin requirements decrease from 9% to 8%, price limits from 7% to 6%;

For futures contracts on natural rubber and rebar, the trading margin and price limits requirements should be restored to the original level. Please refer to the Risk Management Rules of Shanghai Futures Exchange for implementing other provisions concerning trading margins and price limits.  

III. All members shall do well in risk prevention, duly increase margin requirements based on investors’ position and risk level, strengthen the management over withdrawal and deposit of investors’ funds, remind investors of the importance of prudential trading and rational investment, and attach importance to technical system maintenance and IT network safety during the holiday, so as to ensure smooth market operation.