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ZCE Notice on Trading System Testing and Testing of Urea Futures Contract

2019-07-22
According to ZCE, ZEC plan to carry out the pre-listing of Urea Futures trading system test on July 27 and August 3. The relevant issues are hereby notified as follows:
 
1. On July 27 and August 3, from 8:30 to 12:30, ZEC will organize futures member participants and market data distributors to conduct centralized testing of transactions, market quotation acceptance, settlement, and report issuance. For details of the test contract parameters, please refer to the “Urea Futures Contract Test Parameters” (Attachment 1). For specific test requirements, see the Urea Futures Test Guide (Attachment 2).
 
2. When testing on August 3, participants shall verify the business functions of expiration date, performance, and abandonment of white sugar options and cotton options.
 
3. When the test is over, all participants are required to submit the “Trading System Test Feedback Form” by email before 14:00 on the test day (Attachment 3).
 
 
News Link: http://www.czce.com.cn/cn/gyjys/jysdt/ggytz/webinfo/2019/07/1564402039582365.htm
 

 
Appendix I Testing Parameters of Urea Futures Contract
I Urea Futures Contracts of ZCE (Use for test)
Product Urea
Trading Unit 20 tons/lot
Price Quotation Chinese yuan (CNY) per ton
Minimum Price Fluctuation 1 yuan/ton
Daily Price Limit ±4% of the settlement price of the previous trading day;
Relevant provisions on daily price limit under the Measures for the Administration of Risk Control of Zhengzhou Commodity Exchange
Minimum Trading Margin 5% of contract value
Contract Month January, February, March, April, May, June, July, August, September, October, November, December
Trading Hours Monday to Friday (Beijing time except public holidays)
9:00 a.m.-11:30 a.m. 1:30 p.m.-3:00 p.m. Other trading hours stipulated by Zhengzhou Commodity Exchange
Only 9:00 a.m.-11:30 a.m. (Beijing time) on last trading day
Last Trading Day The 10th trading day of the delivery month
Last Delivery Day The 12th trading day of the delivery month
Grade and Quality See the Detailed Rules for Futures Delivery of Zhengzhou Commodity Exchange for details
Delivery Point Delivery points designated by Zhengzhou Commodity Exchange
Delivery Method Physical delivery
Product Code UR
Listed Exchange Zhengzhou Commodity Exchange
 
II Listing Month
Urea futures contracts listed on the first day are: UR001, UR002, UR003, UR004, UR005, UR006, UR007.
Benchmark price of test 1900 Yuan/ton
 
III Contract Parameters
  1. Trading Margin Standard
Trading Period Trading Margin Standard
From listed to 15th calendar day on the month prior to delivery month 5%
From 16th calendar day on the month prior to delivery month to the last calendar day on the month prior to delivery month 10%
Delivery month 20%
 
  1. Holding Position Limit Standard
For urea futures contract, and for trading days between the time of contract listed to the 15th calendar day of the month before the delivery month, when the unilateral holding position of the contract is greater than or equal to a certain size, the holding position limit of the non-futures company members and clients shall be 10 % of the total unilateral positions. When the unilateral position of the contract is less than a certain size, the holding position limit of the non-futures company members and clients shall base on the absolute amount. The specific limit limits are shown in the table below.
Product Unilateral holding position of futures contract The maximum holding position for non-futures company member and clients
Urea Futures Unilateral holding position less than 100,000 lots 10,000 lots
Unilateral holding position equal or greater than 100,000 lots Unilateral holding position * 10%
Unit: lot
 
The standard for each futures contracts from the 16th calendar day of the month before the delivery month to the delivery month is shown in the table below:
Product Maximum unilateral holding position for non-futures company member and clients
From the 16th calendar day of the month before the delivery month to the delivery month Delivery month (The holding position of individual clients shall be 0)
Urea 3,000 lots 1000 lots
 
  1. Trading Commission
The trading commission is 10 Yuan/lot, the commission for opening hedging position is waived.