The China Securities Regulatory Commission (CSRC) has approved the registration of Coking Coal options on Dalian Commodity Exchange (hereinafter referred to as the “DCE”). The relevant matters regarding the listing and trading are hereby notified as follows:
I. Listing and Trading Time
Coking Coal options will be listed for trading from January 16, 2026 (Friday). On the listing day, the call auction will be from 8:55 to 9:00 am, with trading commencing at 9:00 am. The night trading session for Coking Coal options will be available from the evening of January 16, 2026 (Friday).
II. Contracts to Be Listed
The first batch of Coking Coal options contracts to be listed includes options with JM2604, JM2605, JM2606, JM2607, JM2608, JM2609, JM2610, JM2611, and JM2612 Coking Coal futures contracts as their underlying assets.
III. Listing Price
The listing prices of Coking Coal options contracts are calculated based on the BAW American futures options pricing model. The interest rate in the model is the latest benchmark one-year deposit rate, and the volatility is based on factors such as the historical volatility of the physicals prices comprehensively. The listing prices will be released together with the settlement data through the Member Service System after the settlement on the trading day prior to the listing day, and will also be released on DCE's website (www.dce.com.cn).
IV. Trading Orders
Limit order and stop limit order will be offered. The maximum quantity of orders placed each time of the options contract is the same as that of the underlying futures contract, i.e. 1,000 lots.
V. Exercise and Fulfillment
During the trading hours of any trading day and from 15:00 to 15:30 on the expiration day, clients may submit application for exercise, hedging liquidation of the two-way options positions, hedging liquidation of the two-way futures positions following exercise or fulfillment. During the trading hours and from 15:00 to 15:30 on the expiration day, clients may submit application for abandonment of exercise.
VI. Position Limit
The position limit for Coking Coal options is 8,000 lots. The position limits for Coking Coal options and Coking Coal futures are applied separately. With respect to the options contracts of a particular month held by the Non-Futures Company Member and the client, neither the sum of the buying open interest of all call options and the selling open interest of all put options, nor the sum of buying open interest of all put options and the selling open interest of all call options may exceed the position limit of the corresponding options contracts. The positions involving actual control relationship shall be calculated on a consolidated basis.
VII. Portfolio Margin
Starting from settlement on January 16, 2026, JM2605 options contracts will be the contracts applicable to portfolio positions.
VIII. Relevant Fees
The trading commission for Coking Coal options is CNY 0.5/lot. The exercise (fulfillment) commission for Coking Coal options is the same as the option trading commission fee, i.e. CNY 0.5/lot. The hedging trading commission for Coking Coal options is CNY 0.25/lot.
The order fees shall be collected on Coking Coal options. The order fees shall be collected on daily basis. The standards are as follows:
|
Charging Rate: CNY /count OTR：order-to-trade ratio |
|||||
|
Options |
Message amount ≤ 4,000 count |
4,000 < Message amount ≤ 8,000 count; OTR ≤ 2 |
4,000 count< Message amount ≤ 8,000 count; OTR > 2 |
Message amount > 8,000 count; OTR ≤ 2 |
Message amount > 8,000 count; OTR > 2 |
|
Coking Coal options |
0 |
0 |
1 |
2 |
5 |
Notes:
1. The order fees are calculated on the basis of underlying futures contracts.
2. Contract order fee = ∑(each message amount of underlying futures contracts by clients or Non-Futures Company Members on the then-current day × each charging rate)
3. Message amount = number of order placements number of order cancellations OTR= message amount / number of executed orders-1
4. Market makers shall be exempted from charges of order fee when engaged in market making.
5. As for the same client who has several trading codes with different Futures Company Members, or clients and Non-Futures Company Members involving actual control relationship, DCE will calculate their number of order placements, number of order cancellations and number of executed orders on a consolidated basis.
IX. Market Maker Mechanism and Quotation Inquiry
The market maker mechanism is implemented in the trading of Coking Coal options. Non-Futures Company Members or clients may submit a quotation inquiry to the market makers on non-continuous-quotation contracts. The continuous-quotation contracts will be released on DCE's website. The quotation inquiry shall specify the contract symbol of the options. The interval between two quotation inquiries on the same options contract should not be less than 60 seconds. The maximum number of quotation inquiries on each options product under the same trading code is 200 per day.
All entities concerned are required to effectively make preparations for the listing and trading of Coking Coal options, and improve risk management measures to ensure the smooth operation of the market.
Disclaimer: This English translation may be used for reference only. In cases there is any discrepancy between the English version and the original Chinese version, the original Chinese version shall prevail. Dalian Commodity Exchange may change or update this English translation without any prior notice and shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or change with regard to this English translation.
