Factbox: China commodity exchanges act to contain coronavirus-driven volatility

09-Apr-2020 Intellasia | Reuters | 6:02 AM Print This Post

China’s commodity exchanges have rolled out measures, from raising margin requirements and trading limits to halting trade completely, to try to maintain market stability as the coronavirus panic grips the globe.

Below is a list of some of the actions taken, affecting trade in anything from eggs to gold in the world’s biggest commodities consumer.

CRUDE OIL/RUBBER

* The Shanghai International Energy Exchange (INE), responding to a collapse in global oil prices, raised the trading margin on its crude oil futures contract to 11 percent from settlement on March 11, and hiked the trading limit to 10 percent from March 12.

* The INE said it would waive delivery fees for its crude oil and TSR 20 rubber futures from April 10 this year until January 8, 2021 to ease financial pressure on market participants.

* The Shanghai Futures Exchange (ShFE) increased the trading margin on TSR 20 rubber futures to 11 percent from 10 percent after settlement on March 23 and raised the trading limit raised to 9 percent from 8%.

* The Shanghai INE said it would raise the margin requirement for the May contract of crude oil futures to 15%, starting from the settlement on April 14.

SHFE

* The ShFE said on March 13 it was raising trading margins and limits on a large number of commodity futures contracts, including base metals, steel rebar, hot-rolled steel coil and fuel oil.

* It said the trading margin for aluminium, zinc and lead futures contracts would be further raised to 10 percent from 8 percent after settlement on March 23, while the trading limit on those contracts would be increased to 8 percent from 6%.

* The bourse said the trading margin for its copper contract would be further increased to 10 percent from 8 percent and the trading limit raised to 8 percent from 6%. The margin requirement and limit for tin have also been raised to 10 percent and 8%, respectively, ShFE said.

* The bourse has said it would waive delivery fees for 16 productsincluding base metals, steel, gold, silver and fuel oilfrom April 10 until January 8, 2021

PRECIOUS METALS

* The Shanghai Gold Exchange (SGE) on March 16 said it would raise margin requirements and trading limits for gold and silver contracts after big price fluctuations.

* The bourse said it would impose a one-day halt on trading in its Ag (T+D) silver contract on March 18, after the contract fell by 13%, and would take measures to reduce market risk.

* Margin requirements for gold contracts were cut to 8 percent from 10 percent following settlement on April 7, with their trading limits to be lowered to 7 percent from 9 percent starting on April 8. The trading margin for silver contracts fell to 11 percent from 14 percent from April 7 settlement, and the trading limit to 10 percent from 13 percent with effect from the next trading day.

DCE

* The Dalian Commodity Exchange (DCE) said on March 4 it would raise trading limits and margins on its egg futures contracts for May and June delivery.

* It then raised transaction fees for the April and May egg contracts. (https://bit.ly/2QnykWT)

* The DCE said it would raise the trading limit for styrene futures to 9 percent and margins to 11 percent from settlement on March 19.

* On Friday, the DCE said it would adjust the trading limits for its polyethylene and polypropylene futures contracts to 6%, while setting margin requirements to 7 percent from settlement on March 23.

* DCE also said it would change the daily limit and margin requirements of its ethylene glycol futures contract to 9 percent and 11 percent respectively.

* The Dalian exchange adjusted trading limits for iron ore, coking coal and coke futures contracts to 7 percent from 6 percent from March 25.

* The DCE also raised trading limits for palm oil and egg futures contracts to 6 percent from March 25.

* The exchange said it would adjust trading limits for soybean, soymeal, soyoil and PVC futures contracts to 5%, and change margin requirements for these derivative products to 6%

ZCE

* China’s Zhengzhou Commodity Exchange (ZCE) raised the margin requirement for PTA futures contracts from May to December deliveries to 7 percent from settlement on March 25.

* The ZCE also raised trading limits for PTA and Methanol futures contracts from April to December deliveries to 6 percent from March 26.

* The Zhengzhou exchange raised the margin requirement for cotton futures contracts to 7 percent and the trading limit to 6 percent from settlement on March 25.

https://sg.news.yahoo.com/factbox-china-commodity-exchanges-act-110453607.html

 


Category: China

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