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Circular of Shanghai International Energy Exchange on Listing and Trading of TSR 20 Futures Contracts

Shanghai International Energy Exchange, the subsidiary of Shanghai Futures Exchange (hereinafter referred to as INE) has released its Circular on Listing and Trading of TSR 20 Futures Contracts on August 2, 2019. In accordance with the relevant rules of INE, INE hereby notifies the concerning issues as follows:

1. Listing date
TSR 20 futures contracts start trading on August 12, 2019 with the central auction session from 8:55 a.m. to 9:00 a.m. and the market opens at 9:00 a.m..

2. Trading Hours
9:00 to 10:15, 10:30 to 11:30 and 13:30 to 15:00, Monday to Friday.
Continuous trading hours: 21:00 to 23:00, Monday to Friday.
There is no continuous trading session on the last working day (excluding weekends) preceding national holidays.

3. Listing Contracts
NR2002, NR2003, NR2004, NR2005, NR2006 and NR2007.

4. Listing price
The listing price for each contract will be released by INE on the trading day prior to the listing day.

5. Margin requirement and price limit
The trading margin for each contract is set as 9% of the contract value. The price limit for each contract is set as ±7% from the settlement price of the previous trading day. On the first trading day of August 12, 2019, the price limit will be set as ±14% of the listing price.
An Overseas Special Non-Brokerage Participant or an overseas Client may use acceptable foreign exchange as margin. For foreign exchange to be used as margin, the current-day CNY Central Parity Rate published by China Foreign Exchange Trade System (hereinafter referred to as CFETS) shall be used as the benchmark prices for calculating the market value of the foreign exchange. Currently, INE accepts US Dollar as foreign currency collateral with a haircut of 5%.
Prior to the market close of the day, the market value of foreign exchange shall be calculated based on CFETS CNY Central Parity Rate published on the previous trading day. During the daily clearing, INE shall update the benchmark prices of the day and adjust the discounted value of foreign exchange used as margin according to the aforementioned methodology.

6. Disclosure of open interests
Once the open interests of a TSR 20 futures contract at the market close reaches 40,000 lots (two-sided), INE will disclose the trading volumes, long and short positions of the top 20 Futures Firm Members(hereinafter referred to as the “FF Members”) and Overseas Special Brokerage Participants(hereinafter referred to as the “OSBPs”).

7. Transaction fee
10 RMB yuan per lot, which is not waived for closing out the position opened on the same day.

All parties concerned shall get prepared for the listing of TSR 20 futures contracts and improve risk management to ensure the smooth functioning of the market.

 

Shanghai Futures Exchange
August 2, 2019

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