Question: What is the significance of the introduction of continuous trading of steel rebar, hot-rolled coil, natural rubber, and bitumen futures contracts by the Shanghai Futures Exchange?
　　Answer: Building on the success of its continuous trading pilot for precious metals and nonferrous metals futures products, the Shanghai Futures Exchange (“SHFE” or “the Exchange”) is now adding steel rebar, hot-rolled coil, natural rubber, and bitumen futures contracts to its continuous trading lineup, with the following benefits: (1) Their introduction will enhance the ability of the futures market in serving China’s real economy; (2) They promote the internationalization of China’s futures market; (3) They enable China to gain greater influence in commodity pricing in global markets; and (4) They help mitigate the risks investors take when holding positions overnight.

　　Question: Why do the continuous trading hours for steel rebar, hot-rolled coil, and bitumen futures contracts run from 9:00 p.m. to 1:00 a.m. of the next business day, but those for natural rubber contracts run from 9:00 p.m. to 11:00 p.m.?
　　Answer: The SHFE takes into consideration factors such as the characteristics of the contracts, trading hours of related markets, and trading practices of investors and (especially) industry customers when deciding the hours of continuous trading sessions. Setting the continuous trading hours of steel rebar, hot-rolled coils, and bitumen to from 9:00 p.m. Monday through Friday to 1:00 a.m. of the following day provides essential coverage of the active trading hours of related international markets; similarly, setting the continuous trading hours of natural rubber to from 9:00 p.m. to 11:00 p.m. Monday through Friday provides overlap with the trading hours of nearby markets.

　　Question: How does SHFE deal with system failures during continuous trading sessions?
　　Answer: In the event of a technical difficulty that prevents normal trading activities during continuous trading sessions, the SHFE will take appropriate measures in accordance with Article 100 of the General Exchange Rules of the Shanghai Futures Exchange, Article 14 of the Trading Rules of the Shanghai Futures Exchange, Article 7 of the Continuous Trading Rules of the Shanghai Futures Exchange, and applicable provisions of the Contingency Plans of the Shanghai Futures Exchange for Market Emergencies.

　　Question: What changes has SHFE made to its contingency plans in response to the new futures contracts introduced to continuous trading?
　　Answer: The closing time of continuous trading session varies across different contracts. In the event of a trading disruption during continuous trading sessions, the Exchange may announce a delay to the opening time of the continuous trading session for a particular contract. If that delayed opening time coincides with the normal closing time of the continuous trading session for that contract, then the Exchange will suspend continuous trading in that contract for that day; call auction will also be postponed to daytime on the following day. For example, the closing time of the continuous trading session for natural rubber futures contract is 11:00 p.m. If the opening time of the rubber continuous trading session is postponed to 11:00 p.m., then rubber contract will not be traded in that day’s continuous trading session, the call auction for rubber contract will also be deferred to the daytime session of the next day. This rule is put in place to accommodate investors’ expectations and preparedness for the trading hours of the affected contracts.

　　Question: How does one make inward funds transfers during continuous trading sessions? Does the Exchange allow members to make outward funds transfers during continuous trading sessions?
　　Answer: During continuous trading sessions, futures-firm members can continue to use the margin management system to make inward funds transfers. However, the Exchange does not process any outward funds transfer requests from members during these sessions. Customers can use the fund transfer system provided by Certified Settlement Banks or e-banking to make inward funds transfers during continuous trading sessions.

　　Question: What are the differences between the supervisory and regulatory measures instituted for members or customers during continuous trading sessions and those during non-continuous trading sessions?
　　Answer: Members and customers should expect the same supervisory and regulatory measures during continuous trading sessions as per the Risk Management Rules of the Shanghai Futures Exchange and the Enforcement Rules of the Shanghai Futures Exchange. Customers (and industry customers in particular) participating in continuous trading for the first time should fully familiarize themselves with the trading rules and potential risks; futures firms are also expected to establish sound early warning practices. Investors with questions may contact their carrying futures firms, or call 021-68400313 / 021-68400587 for SHFE’s Continuous Trading Operations and Management Division, or 021-68400802 for SHFE’s technical support.