(2013-10-30)By Yu Jun (Journalist from China News Service)

Synchronized with the implementation of the “Arbitrage Regulation”, the Shanghai Futures Exchange (SHFE) released the Amendments to Relevant Processing Standards and Procedures for the “Interim Provisions on Monitoring Abnormal Transactions of SHFE” (hereafter referred to as the Amendments) on October 30. It revised the processing standards for abnormal transactions and also released the Non-hedging Position-holding and Position Limit Scheme.

It is learnt that two modifications have been made in the Amendments on the processing standards for abnormal trading. The first is to supplement the statement that the automatic transaction, the frequent declaration and cancel of an order, the declaration and cancellation of a big-amount order caused by arbitrage will not be regarded as abnormal transactions; the second is to make clear that the automatic transaction and order cancellation resulted from FOK and the FAK trading orders will not be included in the abnormal transaction statistics.

The non-hedging position-holding and position limit scheme includes the position limit principle, the handling approaching the delivery month, the position limit method on actually controlling related accounts, and the supervision on merging the overrun of position-holding. In principle, the non-hedging position-holding amount of non-futures company members or customers should not exceed the total amount of specified position limit proportion of this futures contract in respective period plus the position of arbitrage in this period. The scheme will be implemented since December 2.