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Notice on Market Risk Control during the National Holidays and Mid-Autumn Festival for Year 2017

TheNational Holidays and Mid-Autumn Festival 2017 is approaching. According to the market closing announcement issued by the Exchange, the futures market will be closed from October 1 ~ 8. According to Article 4 and 9 of the Risk Management Rules of the Shanghai Futures Exchange, we decide to make adjustments to the trading margin requirements and price limits for some products around the National Holidays and Mid-Autumn Festival 2017.

I. In the absence of a limit-locked market since September 28, 2017, the trading margin requirements as from the closing and settlement on that day and the price limits as for the following trading day will be adjusted as follows:

For futures contracts on gold, the trading margin requirements rise from 6% to 8%, and the price limits from 5% to 7%;

For futures contracts on silver, the trading margin requirements rise from 7% to 9%, and the price limits from 5% to 7%;

For futures contracts on copper, aluminum, zinc, lead, nickel, tin, hot rolled coils and bitumen, their trading margin requirements rise from 8% to 10%, and their price limits from 6% to 8%;

For futures contracts on steel rebar and natural rubber, their trading margin requirements rise from 9% to 11%, and their price limits from 7% to 9%;

There will be no adjustment made to trading margin requirements and price limits for futures contracts on wire rod and fuel oil.

In the event of any discrepancy between the above-mentioned margin requirements and price limits and the ones prescribed in existing rules, the higher one shall prevail.

II. When the trading resumes on October 9, 2017, the margin requirements for the above-mentioned futures contracts as from the closing and settlement on the first trading day when no price limit is reached and their price limits as from the following trading day will return to their original level. Refer to the Risk Management Rules of the Shanghai Futures Exchange for other rules on margin requirement and price limit.

III. All members are required to do well in implementing position limits for the related contracts, natural person’s position and integral multiple adjustment.

Given the longer time span of the National Holiday and Mid-Autumn Festival, the complicated economic and financial situations both at home and abroad as well as numerous uncertain factors that may influence the market, all members are required to do well in risk prevention, duly increase margin requirement based on investors’ position and risk level, strengthen the management over withdrawal and deposit of investor’s funds, remind investors of the importance of prudent trading and rational investment, and attach importance to technical system maintenance and IT network safety during the holiday. Designated futures margin depository banks and certified delivery warehouses should focus on safety to ensure smooth market operation.

 

 

 

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