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Notice on Market Risk Control during the Tomb-Sweeping Day Holiday 2017

FROM: Shanghai Futures Exchange

TO: All Members

CC: General Office and Futures Regulatory Department of China Securities Regulatory Commission

SUBJECT: Notice on Market Risk Control during the Tomb-Sweeping Day Holiday 2017

 

According to the Announcement by the Exchange on Trading Schedule during Tomb-Sweeping Day Holiday for 2017, the Exchange’s futures markets will be closed from April 2 through April 4. According to the Risk Management Rules of Shanghai Futures Exchange, we decide to adjust the trading margin requirements and price limits for some products around the Tomb-Sweeping Day Holiday.  

I. In the absence of a limit-locked market on March 31, 2017, the trading margin requirements as from the market close and settlement on that day and the price limits as for the following trading day will be adjusted as follows:  

For futures contracts on natural rubber, the trading margin requirements rise from 9% to 10%, and their price limits from 7% to 8%;

Trading margin requirements and price limits of other futures products of the Exchange still follow current trading rules.

II. When the trading resumes on April 5, 2017, the trading margin requirements as from the market close of the first trading day with the absence of price limits and price limits requirements as from the following trading day will be as follows:

For futures contracts on copper, aluminum and tin, the trading margin requirements decrease from 9% to 8%, price limits from 7% to 6%;

For futures contracts on silver, the trading margin requirements decrease from 8% to 7%, price limits from 6% to 5%;

For futures contracts on natural rubber, the trading margin and price limits requirements should be restored to the original level. Please refer to the Risk Management Rules of Shanghai Futures Exchange for implementing other provisions concerning trading margins and price limits.  

III. All members shall do well in risk prevention, duly increase margin requirements based on investors’ position and risk level, strengthen the management over withdrawal and deposit of investors’ funds, remind investors of the importance of prudential trading and rational investment, and attach importance to technical system maintenance and IT network safety during the holiday, so as to ensure smooth market operation.

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