ECONOMIC DAILY: NO TRANSACTION FEES FOR CLOSE-OUT OF POSITIONS OF SOME PRODUCTS ON SHFE OPENED ON THE SAME DAY

Updated on Apr 01,2014

April 1, 2014

By Liu Ming

From April 1, no transaction fees will be charged for closing positions of aluminum, zinc, lead, and steel rebar of the Shanghai Futures Exchange (SHFE) opened on the same day. The SHFE now has 9 products with no transaction fees charged for closing positions opened on the same day.

Wang Nana, an analyst of COFCO Futures, said that the SHFE has made a wide adjustment to transaction fee for close-out of positions-, covering all products with continuous trading, which can greatly reduce investor’s trading cost, directly encourage traders expecting little investment and quick return, and effectively increase their trading profitability.

An official of the SHFE said that no transaction fees for closing positions opened on the same day can directly reduce investors’ trading cost, which will increase capital usage efficiency, help to increase market liquidity, and promote institutional investors’ participation. Besides, it will contribute to build a mature hedging mechanism in the market, improve price-finding function, and control possible over-speculation, thus making the development of futures market match with spot market.