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Circular of Shanghai International Energy Exchange on the Delivery Issues of SC2001

Shanghai International Energy Exchange (hereinafter referred to as “the Exchange”), the subsidiary of Shanghai Futures Exchange has released its Circular on the Delivery Issues of SC2001 on November 29, 2019.\

The last trading day for crude oil futures contract SC2001 is December 20, 2019, and the delivery dates are from December 23 to December 27, 2019.

1. In accordance with the Article 142 of Delivery Rules of Shanghai International Energy Exchange, a natural person as a client shall close out all the positions of SC2001 before the market close on December 10, 2019.

In accordance with the Article 63 of Risk Management Rules of the Shanghai International Energy Exchange, the number of selling positions of SC2001 held by Clients, Non-FF Members, or OSNBPs shall not exceed that of the standard warrants they held after the market close on December 17, 2019.

Members shall remind the Clients to manage their positions by timely closing out.

2. In accordance with the Article 8 of Delivery Rules of the Shanghai International Energy Exchange, the clients who cannot issue or accept the prescribed invoices of the Exchange shall not make or take the crude oil futures delivery.

Members shall remind their clients of concerning rules and fully understand the clients' qualification and capability of delivery. Clients who cannot or will not make or take delivery shall be well reminded of the liquidity risk while approaching the delivery month. Clients intending to engage in the delivery shall complete the opening of standard warrant accounts through the Standard Warrant Management System. Clients as buyers shall get prepared for the payments, while clients as sellers shall get the standard warrants ready.

3. In accordance with the Article 31 of Delivery Rules of the Shanghai International Energy Exchange, the Exchange, in its sole discretion, may appoint specific Members, OSPs, Overseas Intermediaries or Clients to submit large trader position reports or other supporting materials.

Members shall know about their clients’ positions and manage risks in a sound manner.

All parties concerned shall abide by the relevant rules and make preparations for the sound delivery of SC2001.  

Shanghai Futures Exchange

November 29, 2019

 

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