The China Securities Regulatory Commission (CSRC) has officially approved the registration of the Linear Low Density Polyethylene (LLDPE), Polyvinyl Chloride (PVC), and Polypropylene (PP) Monthly Average Price Futures (hereinafter referred to as the “three chemical monthly average price futures”) on Dalian Commodity Exchange (hereinafter referred to as the “DCE”). The relevant matters regarding the listing and trading are hereby released as follows:
I. Listing and Trading Time
The three chemical monthly average price futures will be listed for trading at 21:00 on October 28 (Tuesday), 2025, with the call auction from 20:55 to 21:00 on the same day. Night trading session will be available for all three contracts.
II. Contracts to Be Listed
The first batch of Linear Low Density Polyethylene (LLDPE) Monthly Average Price Futures contracts to be listed includes L2602F, L2603F, and L2604F.
The first batch of Polyvinyl Chloride (PVC) Monthly Average Price Futures contracts to be listed includes V2602F, V2603F, and V2604F.
The first batch of Polypropylene (PP) Monthly Average Price Futures contracts to be listed includes PP2602F, PP2603F, and PP2604F.
After the close of trading on the last trading day of each month, a new monthly average price futures contract for the next calendar month will be added, based on the farthest-month contract already listed.
For instance, after the market close on October 31, 2025, contracts L2605F, V2605F, and PP2605F will be added.
III. Listing Benchmark Price
The listing benchmark price of the three chemical monthly average price futures contracts will be the settlement price of the corresponding futures contracts on October 28, 2025.
For example, the listing benchmark price of the L2602F contract will be the settlement price of the L2602 contract on October 28, 2025.
Relevant information can be found on the DCE website (www.dce.com.cn) via the following path: “Data Center → Business Data → Business Parameters →Trading→New Contracts Information”
The corresponding contract for the LLDPE Monthly Average Price Futures is the LLDPE futures contract with the same contract month.
The corresponding contract for the PVC Monthly Average Price Futures is the PVC futures contract with the same contract month.
The corresponding contract for the PP Monthly Average Price Futures is the PP futures contract with the same contract month. (Same applies hereinafter.)
IV. Trading Margin and Price Limit
The trading margins and daily price limits for the three chemical monthly average price futures contracts shall be consistent with those of their corresponding futures contracts.
V. Spread Orders
Spread orders are supported for the three chemical monthly average price futures, including:
1. Calendar spread order (between different contract months of the same monthly average price futures product), e.g., SP L2602F & L2603F;
2. Inter-commodities spread order (between different monthly average price futures products), e.g., SPC L2602F & V2602F;
3. Different delivery methods spread order (between different delivery methods, i.e., physically delivered futures contracts and monthly average price futures contracts), e.g., SP L2602 & L2602F.
VI. Commissions
The trading commission for the three chemical monthly average price futures shall be CNY 1 per lot, and the hedging trading commission shall be CNY 0.5 per lot.
The delivery commission for the three chemical monthly average price futures shall be CNY 1 per lot.
In accordance with the Notice on Reduction and Exemption of Delivery Commission and Other Fees (Ref. No. 578 [2024], DCE), delivery commission for the three chemical monthly average price futures will be exempted until December 31, 2025, except for high-frequency traders as determined by DCE.
VII. Order Fees
The order fees shall be collected on daily basis. The standards are as follows:
|
Products
|
Charging rate: CNY /count
|
||||
|
Message amount≤4000 counts
|
4000 counts <message amount≤8000 counts；OTR≤ 2
|
4000 counts<message amount≤8000 counts；OTR>2 |
Message amount> 8000 counts；OTR≤ 2 |
Message amount>8000 counts；OTR>2 |
|
|
Linear low density polyethylene (LLDPE) Monthly Average Price Futures
|
0 |
0 |
2 |
4 |
10 |
|
Polyvinyl Chloride (PVC) Monthly Average Price Futures; Polypropylene (PP) Monthly Average Price Futures |
0 |
0 |
3 |
6 |
15 |
Notes:
1. The contract order fees are calculated based on futures contract.
2. Contract order fee = ∑ (each message amount of contract by clients or non-futures company members on the then-current contract × each charging rate).
3. Message amount = number of order placements+ number of orders cancellations; Order-to-Trade Ratio (OTR) = message amount/ number of executed orders − 1.
4. Market makers are exempted from order fees for market making trading.
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.
VIII. Portfolio Margin
The three chemical monthly average price futures contracts are eligible for portfolio margining discount. For more information, please see “Data Center – Business Data – Business Parameters – Trading Parameters – Portfolio Margin Parameters” via the Dalian Commodity Exchange (DCE) website (www.dce.com.cn).
IX. Position Information Disclosure
DCE will release the trading volumes and open interests of the contracts in accordance with the regulations after the settlement on each trading day.
X. Trading Limits
The trading limits for each contract of the three chemical monthly average price futures are as follows:
· Linear Low Density Polyethylene (LLDPE) Monthly Average Price Futures: 8,000 lots per contract;
· Polyvinyl Chloride (PVC) Monthly Average Price Futures: 18,000 lots per contract;
· Polypropylene (PP) Monthly Average Price Futures: 10,000 lots per contract.
Non-futures company members or clients shall not open positions in excess of their trading limits for any single contract in a day. The daily open position refers to the sum of buy open positions and sell open positions for a single contract by the non-futures company member or client on that day.
The above limits do not apply to hedging or market-making. Accounts with actual control relationships are managed as a single account. DCE may adjust trading limits based on market conditions.
XI. Position Limits
Position limits shall be implemented in accordance with the Measures for Risk Management of Dalian Commodity Exchange. Details are as follows: (Unit: Lot)
|
Period |
Unilateral open interest of Contract |
The position limit applicable to the Non-Futures Company Member and the client |
|
From the Contract listing date to the 14th trading day of the month immediately preceding the contract month |
Unilateral open interest ≤200,000 |
4,000 |
|
Unilateral open interest ＞200,000 |
Unilateral open interest ×2% |
|
|
From the 15th trading day of the month immediately preceding the contract month |
—— |
1,000 |
All relevant entities are requested to make preparations for the listing of the three chemical monthly average price futures, pay attention to risk prevention, and ensure the stable operation of the market.
