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The listing of the contracts of the polypropylene (PP) futures on Dalian Commodity Exchange (DCE) has been approved by China Securities Regulatory Commission (CSRC) in the “Official Reply to Dalian Commodity Exchange on Listing the Polypropylene Futures Contracts” (CSRC Letter No. 54 [2014]). In order to ensure the smooth operation of the PP futures contracts after the listing, the issues related to the listing and trading of the PP futures contracts are now notified as follows:
1. Listing Time
The PP futures contracts will be listed and traded as of February 28, 2014 (Friday).
2. Listed and Traded Contracts
The first listed and traded contracts are PP1405, PP1406, PP1407, PP1408, PP1409, PP1410, PP1411, PP1412, PP1501 and PP1502.
3. Benchmark Listing Prices
The benchmark listing prices of the new contracts will be notified separately by DCE on the trading day before the listing.
4. Trading Margin and Price Limit
The trading margin for the PP futures contracts is tentatively set at 5% of the contract value, and the price limit is tentatively set at 4% of the settlement price of the previous trading day, with the price limit for the new contracts on the first listing day set at 8% of the benchmark listing price.
5. Transaction Fee
The transaction fee for the PP futures contract is 0.005% of the sum of the traded contracts, and the transaction fees for the same contract opened first and then closed on the day will be charged respectively at 0.0025% of the sum of the traded contracts.
6. Releasing Information of Positions
After the settlement on each trading day, DCE will release the trading volumes and positions related to the PP futures contracts.
7. Storage Charge
The PP storage charge is set at RMB 1 / ton / day.
8. Designated Quality Inspection Institutions
China Certification & Inspection Group Inspection Co., Ltd., SGS-CSTC Standards Technical Services Co., Ltd. and Ningbo Entry-Exit Inspection and Quarantine Bureau Technical Center serve as the designated quality inspection institutions for the PP (see Attachment 1).
9. Designated and Reserved Delivery Warehouses
(1) Zhejiang International Business Group Logistics Co., Ltd., Ningbo Free Trade Zone Gaoxin Container Co., Ltd., Zhejiang No. 837 Department of State Reserve Bureau, CMST Development Co., Ltd., SIPG Logistics Co., Ltd., China National Materials Storage and Transportation Guangzhou Corporation, Kingfa Science and Technology Co., Ltd., Qingzhou CMST Logistics Co., Ltd. and Lichen Logistics Co., Ltd. are designated PP delivery warehouses (see Attachment 2).
The above-mentioned designated delivery warehouses shall be put into use as of the listing day of the PP contracts, and the price ceilings for entry and exit-warehouse costs are specified in Attachment 3.
(2) Hangzhou Lingang Logistics Co., Ltd. and Qiancheng Logistics Co., Ltd. serve as deserved PP delivery warehouses.
The member units are requested to effectively make preparations for the listing of the PP futures, pay attention to the prevention of risks and ensure the smooth operation of the market.
