NOTIFICATION ON MATTERS RELATED TO THE LISTING OF HOT-ROLLED COIL FUTURES

Updated on Mar 17,2014

NOTIFICATION ON MATTERS RELATED TO THE LISTING OF HOT-ROLLED COIL FUTURES

From: The Shanghai Futures Exchange

To: All Members

Subject: Notification on Matters Related to the Listing of Hot-rolled Coil Futures

Filing Serial: SQBF [2014] No. 25

March 17, 2014

According to the Notification on Listing of Hot-rolled Coil Futures Contract on the Shanghai Futures Exchange (ZJH[2014]No.84) issued by the China Securities Regulatory Commission, it has already approved of the listing of hot-rolled coil futures contract on the Shanghai Futures Exchange. In order to ensure the smooth operation of hot-rolled coil contract following its listing, it is notified as follows:

I. Listing date

Hot-rolled coil futures contract starts trading on March 21, 2014.

II. Contract Months

The contract months are from July 2014 through March 2015, i.e., the nine contract months of HC1407, HC1408, HC1409, HC1410, HC1411, HC1412, HC1501, HC1502 and HC1503.

III. Trading Hours

Monday to Friday : 9:00 a.m.—11:30 a.m. and 1:30 p.m.—3:00 p.m.

Continuous trading hours will be announced in due course.

IV. Reference price

The reference price of the new contract is announced by the Exchange on the day prior to the contract listing.

V. Margin requirement and price limit

The margin requirement for the trading of hot-rolled coil futures contract is tentatively set at 6% of the contract value, and the price limit tentatively at 4%. On the contract listing day, the price limit is two times of the tentative price limit (within 8% above or below the reference price).

VI. Disclosure of open interest

When the open interest in one hot-rolled coil contract reaches 200,000 lots (two-sided), the Exchange will disclose the total trading volume and total long/short open interests in that contract by futures-firm members and non-futures-firm members respectively, as well as top 20 futures-firm members ranked by trading volume and long/short open interest in that contract.

VII. Transaction fee

The transaction fee for the trading of hot-rolled coil contract is tentatively set at 0.08% of the turnover.

The close-out of positions opened within the same trading day in hot-rolled coil contract is free of transaction fee.

VII. Delivery fee

Both sides of physical delivery shall pay the Exchange 1 yuan/ton as delivery fee.

Please make sufficient preparations for the listing of hot-rolled coil contract and do well in risk prevention to ensure smooth market operation.