Futures Daily: SHFE Made Adjustments to Last Trading Day and Delivery Period of Contracts for February, 2018

Updated on：January 8,2018

Reported by: Chen Donglin

On January 5, SHFE announced that the last trading day of the contracts for February 2018 shall be February 9, 2018, and the delivery period be February 12, 13, 14, 22 and 23,2018, covering 12 futures products such as copper, aluminum, zinc, lead, nickel, tin, gold, silver, steel rebar, wire rod, hot-rolled coil and bitumen.

It is learned that according to the stipulations of the contracts, the last trading day of the concerned futures products is the 15^th day of the delivery month, and their delivery period, the 5 consecutive days after the last trading day. Should no adjustment be made, the delivery for relevant contracts would be fulfilled in the following month, resulting in the risk of mismatched tax bills, since the Exchange closes on the spring festival holidays from February 15, to February 21, 2018. In view of this, SHFE has, as per the past practices, made adjustments to the last trading day and the delivery period according to the statutory spring festival holidays.

According to market sources, the Exchange has made the adjustments to prevent the spring festival from affecting the delivery of relevant products, and also solve the problems of circulation and matching of bills. It ensures that the clients will fulfill the settlement of warrants, funds and VAT invoices prior to February, 2018, and thus effectively prevent the delivery risk during long holidays.

With regard to the forward adjustments to the last trading day and the delivery period of relevant contacts for February, 2018, the responsible personage of SHFE reminds the members and clients of the preparation for the trading and delivery of relevant contacts. First of all, the member shall remind their clients to duly adjust the portfolio, and be prepared for the tier margin collection of relevant contracts and natural person portfolio adjustment; secondly, the members shall fully understand the delivery intention of investors, and duly prepare for the delivery funds and warrants so as to ensure the smooth operation of the delivery for relevant contracts.

In order to facilitate market participants to make arrangements in advance as per the risk control nodes of the whole year, SHFE will produce a trading calendar according to the Announcement on Trading Schedule during National Holidays for Year 2018 and the Notice on Adjustment of the Last Trading Day for the Contracts for February 2018, and release it on its official website.