SECURITIES TIMES: THE SHFE RELEASES RISK CONTROL MEASURES FOR LABOR DAY HOLIDAY

Updated on Apr 24,2014

April 24, 2014

By Shen Ning

The Shanghai Futures Exchange (SHFE) released the “Notification on Market Risk Control for the Labor Day 2014” on April 22 to adjust the trading margins and price limits for some products around the Labor Day Holidays.

According to the market closure notification issued by the SHFE, the market will be closed from May 1 to 3. If there is no unilateral market on April 29, as from the closing and settling on that day, the trading margin of aluminum futures contracts will rise from 5% to 6% and the price limit from 4% to 5%; the trading margins of zinc and lead futures contracts will rise from 6% to 7% and the price limits from 4% to 5%; the trading margins of copper, gold, and natural rubber futures contracts will rise from 7% to 8% and the price limits from 5% to 6%; the trading margin of silver futures contracts will rise from 8% to 9% and the price limit from 6% to 7%; and the trading margins and price limits of steel rebar, hot-rolled coil, bitumen, wire rod, and fuel oil futures contracts still refer to the existing rules. When the trading resumes on May 5, the trading margins and price limits of the above futures contracts as from the closing and settlement on the first trading day when no price limit is reached will return to their previous levels.

The schedule for continuous trading during the Labor Day Holiday is as follows: no continuous trading will be arranged on the night of April 30; on May 5, time for the call auction of gold, silver, copper, aluminum, zinc, and lead futures products is 8:55 am - 9:00 am; and the continuous trading will resume on the night of May 5.