By Zhang Fan

Source: Futures Daily

 

Shanghai Futures Exchange (SHFE) will start simulated trading of asphalt futures on August 1 (Thursday), according to an announcement made by the bourse yesterday.

 

As arranged, the asphalt futures will be traded simulatively from 9:00 a.m. to 11:30 a.m. and 1:30 p.m. to 3:00 p.m. The listing benchmark price of the contract will be announced before market opening on Thursday. The exchange tentatively requires the investors to pay 6% of the contract value as a margin deposit and 0.03‰ of the turnover as trading fee, and limits the daily moves in the futures to 4% of the previous closing price. The price movement on the first day of the simulated trading will be limited to 8% of the benchmark price, or two times of the tentative price limit.

 

The tick size of the contract is RMB2/ton, rather than RMB1/ton proposed in the draft to solicit public opinions. Other than that, the contract specification remains the same as drafted, with the delivery grade being No. 70 Grade-A road asphalt, the trading unit of 10 tons per lot, the minimum margin of 4% of contract value, the daily fluctuation range capped at 3%. The delivery months are 24 months; the contract can be delivered in every of the first six months and then delivered quarterly.

 

Analysts believe that the simulated trading will be conducive to the official launch of asphalt futures.