By Li Lei
The SHFE released the margin of about RMB1.8 billion on the first day.
The One-way Large-side Margin System of the Shanghai Futures Exchange (SHFE) was officially implemented since the closing and settlement on December 27th. Statistics showed that after the closing and settlement on December 27th, the margin charged by the One-way Large-side Margin System was about RMB1.8 billion lower than that by the Two-way Margin System. Insiders believed that the One-way Large-side Margin System launched by the SHFE has increased the quality of the margin charged on the basis of holding on to the bottom line of risks and brought the most direct convenience to market participants.
The SHFE officially implemented the One-way Large-side Margin System as of the closing and settlement on December 27. According to the statistics released by the SHFE, the margin charged by the One-way Large-side Margin System was RMB1.8 billion lower than that by the two-side margin system. For investors with two-way position-holding, the margin might decrease by 50% at most.
The launching of the One-way Large-side Margin System by the SHFE has, under the basis of safeguarding the bottom line of risks, increased the quality of the margin charged and brought the most direct convenience to market participants.” Gao Xiaoyu, Vice General Manager of China Minmetals Non-ferrous Metals Co., Ltd., believed that the new measure would play a positive role in revitalizing the market’s remnant capital, enhancing the market’s capital efficiency, and reducing the market’s operating cost. He analyzed that as this system needs no qualification application or approval, it is easy and convenient in its implementation, thus greatly facilitating the daily operation of investors. Besides, this system would also reduce the capital occupation caused by hedging enterprises’ positions of position-holding, save capital cost, and enhance hedging enterprises’ enthusiasm in trading in the market.
Luo Shengzhang, General Manager of Maike Trading Group, said that this system will activate enterprises’ basis trading, better display the price-finding function of futures, and in particular, play a positive role in reducing enterprises’ financial pressure.
All market participants have also well responded to this new system. According to the “List of First Batch of Futures Firm Members Finishing Preparatory Work for Charging One-way Large-side Margin System” released by the SHFE on December 25th, suppliers for 5 key members’ terminal software had completed relevant technical preparation in advance and 152 futures firm members have finished the preparatory work for listing on December 25th. “The successful launching of the One-way Large-side Margin System is the result of the concerted efforts of the SHFE, software companies, and all futures firms.” Liu Yuerong, Manager of the Settlement Department of Sinosteel Futures Co., Ltd., said that the SHFE, in particular, has provided all-round guarantee for the successful implementation of the new measure, from the revising of the system to the members training, system upgrading, simulated trading system testing, and formal system testing.
An official of the SHFE said that the One-way Large-side Margin System has been opened to both members and investors since its implementation on December 27th, thus enabling investors to enjoy this preferential policy at the first time.
An official of the Settlement Department of COFCO Futures Co., Ltd. said that during the process of the launch of the SHFE One-way Large-side Margin System, the trading and settlement achieved seamless connection and smooth transition, which gained widespread popularity among arbitrage and hedging customers.
This new measure has also been highly praised by the academic circles in China. Wu Chongfeng, Deputy Dean of the School of Management of Shanghai Jiao Tong University (SJTU) and Chief of the Research Center of Financial Engineering of SJTU, believed that this measure creatively combined the international margin computing methods such as SPAN (Standard Portfolio Analysis of Risk) with the actual situation of China’s futures market, thus laying a solid foundation for connecting China’s futures market margin system with international convention and increasing its competitiveness.
Source: Futures Daily
Products Specs
Trading Calender
Fees
Rules
Education
Back to Top
沪公网安备 31011502008304号