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On November 2, Dalian Commodity Exchange (DCE) conducted the test on the egg futures trading system with the test trading volume of 646,000 lots. DCE’s coordinator of this test said that members have actively participated in the test on egg futures trading system and all presented high enthusiasm. The test has checked the trading technology system in terms of its business and technology, which has enabled the market to further understand the trading rules of the egg variety. The trading and settling operated normally during the test and the test presented a satisfactory result.
The test has retained the existing products and added new egg products, with the two-letter code of "jd" and a total of 10 contracts (jd1403, jd1404, jd1405, jd1406, jd1409, jd1410, jd1411, jd1412, jd1501 and jd1502). The listed benchmark price of tested contracts is RMB 4,000 for 500kg and the margin level is 8%. Altogether 164 members participated in the test with 485 log-in seats. Participants in the test include floor traders of the trading hall and relevant people of the remote trading system and the settling system. During the test, the trading personnel are required to complete the test operations for all the functions such as logging-in, position opening, position closing, correctness of the trading data, the feedback speed for placing an order, the feedback speed for returning the report of successful trading, the real-time quotes, preparatory orders commission, capital changes, and the feedback of after-hour settling information.
Previously, DCE has carried out simulation tests on the egg variety trading system on March 30 and April 13 respectively, both presenting satisfactory results. In order to adapt to the new market changes, prevent market risks, and ensure the successful listing and operation of the new variety, DCE has made the third test on the trading system.
Market participant believed that the successful operation of this test means that the listing of the egg futures is approaching and the market prediction that the egg futures will be launched in the first ten days of November might be realized.
Market analyst also pointed out that the full-scope test for the new variety is generally a simulation of the formal operation of the variety. Though the relevant indexes in the released tested contracts and rules are the testing values, it can be noticed that the threshold of egg futures during the initial period of its launching is relatively high, judging from the relatively high margin of 8% in the initial period and the relatively strict position limit. It shows that the management authority will carry out strict management on the first husbandry and fresh agricultural product of egg futures, so as to prevent over speculation, control risks, and not pursue trading volume, thus ensuring the listed operation idea of “high standards and steady start” of the egg futures.
