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Notice on Conducting Simulation Trading Test in Production Environment for New Product

2019-09-04
DCE will conduct two whole-market trading tests in production environment for the new product on September 7 (Saturday), 2019, and September 21(Saturday), 2019.
 
Please refer to attachments for the details.
 
Appendix 1 Testing contract and detailed rules (Draft)
Appendix 2 Access Instruction of Testing
Appendix 3 Business Instruction of Testing
Appendix 4 Feedback Form of Testing (Template)
 

 
Appendix 1
Testing contract and detailed rulesDraft
 
1.     Contract
 
Styrene Futures Contract of Dalian Commodity Exchange (Draft for Comments)
Product Styrene
Trading Unit 5 Ton/lot
Price Quote Yuan (RMB)/Ton
Tick Size 1 Yuan/Ton
Daily Price Limit 4% of last settlement price
Contract Months Monthly contracts (12 contracts per year)
Trading Hours 9:00 - 11:30 am, 13:30 - 15:00 pm Beijing Time, Monday - Friday, and other trading hours announced by DCE
Last Trading Day The last but three trading day of the contract month
Last Delivery Day 3rd trading day after the last trading day
Deliverable Grades DCE Styrene Delivery Quality Standard (F/DCE EB001-2019)
Delivery Location The styrene delivery warehouses designated by DCE
Minimum Trading Margin 5% of the contract value
Delivery Method Physical delivery
Ticker Symbol EB
Exchange Dalian Commodity Exchange
 
 
2. Listed ContractEB2004, EB2005, EB2006, EB2007, EB2008, EB2009. Benchmark Price: 8500 yuan/ton
 
3. The maximum order quantity per order of styrene is 1000 lots.
 
4. Trading Commission: The trading commission standard of styrene futures is 6 Yuan/lot
 
5. Trading Margin
1)      The minimum trading margin: 5%
2)      The Exchange can raise the trading margin standard according to the open interest of the contract and announce to the market.
3)      The standards for the trading margins near the delivery period with respect to styrene futures contract:
Trading Period Trading Margin (CNY/Lot)
The fifteenth trading day of the month immediately preceding the delivery month Ten percent (10%) of the contract value
The first trading day of the delivery month Twenty percent (20%) of the contract value
 
 
6. Price Limit
The price limit for newly listed styrene futures contract is 8% of the benchmark price. The price limit of styrene futures contract is 4% of last settlement price on the month before delivery month. The price limit is 6% of last settlement price on the delivery month
In the event the one-direction non-continuous quotation under the price limit occurs on a certain trading day (and such trading day is denoted as the N trading day), from the settlement of that day, the trading commission of styrene futures contract will be adjusted to 9% of the contract value, and the price limit for styrene futures on N+1 trading day will be adjusted to 7%.
In the event that the one-direction non-continuous quotation under the same-direction price limit occurs on the N+1 trading day as on the N trading day, from the settlement on N+1 trading day, the trading commission of styrene futures contract will be adjusted to 11% of the contract value, and the price limit for styrene futures on N+2 trading day will be adjusted to 9%.
 
7. Position Limit
The position limit applicable to the Non-Futures Company Member and the client of styrene futures during general month (from the listing of the contract to the fourteenth trading day of the month immediately preceding the delivery month) shall be: (Unit: Lot)
Product Unilateral Open Interest of Contract Non-Futures Company Member Client
Styrene Unilateral position≤120,000 12,000 12,000
Unilateral position>120,000 Unilateral position×10% Unilateral position×10%
 
 
The positions limit of styrene contract enter into the first month prior to deliver month and delivery month shall be: (Unit: Lot)
Product Unilateral Open Interest of Contract Non-Futures Company Member Client
Styrene As from the fifteenth trading day of the month immediately preceding the delivery month 2,000 2,000
Delivery month 1,000 1,000
 
 
The quantity of the positions held by the Non-Futures Company Member or the client shall not exceed the position limit as prescribed by the Exchange; and with respect to any excess thereof, the same-direction opening of the position for trading shall be prohibited. The forced position liquidation will be carried out by the Exchange in accordance with the applicable provisions on the immediately following trading day against the Non-Futures Company Member or the client whose positions exceed the position limit.

Please note: The value in the draft is test data.