.jpg)
The change also includes the elimination of expanded daily price limits. The new daily limits will be as follows: domestic feed wheat and western barley will increase to CAD 7.50 per tonne; oats to USD7.50 per tonne; field peas to CAD 10.00 per tonne; canola and flaxseed CAD 30.00 per tonne. "The increase in daily trading limits will allow Winnipeg Commodity Exchange products to remain competitive with recent changes in international commodity markets," stated Bruce Love, WCE Director of Marketing.
The Board of Directors of WCE Clearing Corporation (WCECC) also approved the following changes in margin related policies and procedures effective from Monday, October 2, 2000.
The WCECC will eliminate short option minimum margins and margin all short option positions based on SPAN margining. The elimination of short option margins will have the greatest impact on out-of-the-money options.
Further, old crop/new crop spread margin minimums will be reduced and this will take effect Monday, October 2, 2000. WCECC will continue to maintain minimum spread margins, but they will be reduced to $70/spread for oilseeds and $35/spread for feed grains. The previous minimum spread margins were $100 for oilseeds and $50 for feed grains.
WCECC monitors the volatility of crop year spreads on an ongoing basis and sets margin levels as a function of the market volatility. When dictated by market conditions, spread margins will be above the stated minimums. Please refer to the WCE website for current crop-year spreads and outright margin obligations.
WCE trades futures contracts in: canola, western barley, flaxseed, oats, feed wheat and field peas and options contracts in: canola, flaxseed, feed wheat and western barley. Established in 1887, Winnipeg Commodity Exchange is a not-for-profit organization providing financial instruments for price discovery and the transference of risk in an efficient and open manner.
