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With approaching of the Qingming Holiday and in order to effectively control market risk in the holiday period, three domestic commodity or futures exchanges on March 22 issued notices to change margin ratios as well as upper and lower price fluctuation limits on relevant futures products.
According to its announcement, the Shanghai Futures Exchange will close for holidays from April 2 to April 4, and has made changes of trading margin ratios as well as upper and lower price fluctuation limits on relevant futures products around the Qingming Holiday as follow: starting from the closing settlement time of March 29 on, trading margin ratios will increased to 9 percent from 7 percent for futures contracts of aluminum and gold, and upper and lower price limits for them will rise to 6 percent from 5 percent; trading margin ratios will float up to 10 percent from 8 percent for futures contracts of zinc, lead, steel rebar, steel wire-rod and fuel oil, and upper and lower price limits for them will go up to 7 percent from 6 percent; the trading margin ratio for copper futures contracts will climb to 11 percent from 9 percent, and the upper and lower price limit will be changed to 7 percent from 6 percent; the trading margin ratio for futures contracts of natural rubber will be 14 percent, up from 13 percent, and the upper and lower price limit will be 7 percent , up from 6 percent.
After trading resumption on April 5 and starting from the closing settlement time of the first trading without triggering price limits, all changes will reverse to their original levels.
The Dalian Commodity Exchange said in its notice, starting from the settlement time of March 29, 2012 on, the minimum trading margins will increase to 8 percent for contracts of No. 1 soybeans, No.2 soybeans, soybean meal, soybean oil, RBD palm olein, PE, PVC and coke, and the upper and lower price fluctuation limits for these contracts will be expanded to 6 percent.
After resumption of trading on April 5, 2012 and starting from the settlement time of the first trading day without triggering price limits and without consecutive one-sided offer prices, the minimum trading margins will reverse to 7 percent for all contracts, and the upper and lower price fluctuation limits for them will reverse to 5 percent.
During the Qingming Holiday period, the minimum trading margin requirement for corn will remain at 7 percent and the upper and lower price fluctuation limits will stay unchanged at 5 percent.
The Zhengzhou Commodity Exchange said in its notice, starting from the settlement time of March 29, 2012, trading margins will be adjusted to 8 percent from previous levels for futures contracts of cotton No. 1, early rice and common wheat, and upper and lower price limits will change to 5 percent. Trading margins will increase to 10 percent from previous levels for futures contracts of hard white wheat, strong gluten wheat, white sugar, purified terephthalic acid, rapeseed oil and methanol, and upper and lower price limits for them will be 5 percent.
According to the notice, after resumption of trading on April 5 and starting from the settlement time of the first trading day without one-sided market movements, trading margins as well as upper and lower price limits will reverse to their original levels for all contracts.
