China's Fourth Futures Exchange Publishes Documents on Stock Index Futures Trading

The China Financial Futures Exchange has recently published four documents outlining the trading rules and regulations for its new stock index futures contract. The exchange, which focuses on financial derivatives trade, has introduced a new contract for the Shanghai and Shenzhen 300 Stock Index Futures. The contract will have a trading code of IF, with a face value of 430,000 yuan and a minimum access threshold of about 34,400 yuan.

Key Takeaways:

• The China Financial Futures Exchange has published four documents outlining the trading rules and regulations for its new stock index futures contract: the Shanghai and Shenzhen 300 Stock Index Futures Contract, the Transaction Rules, the Settlement Rules, and the Management Rules on Risk Control.
• The trading code of the Shanghai and Shenzhen 300 stock index futures contract is IF, with a multiplication of 300 yuan ($US37.90) and a contract face value of 430,000 yuan.
• The minimum access threshold for stock index futures trading is set at about 34,400 yuan on the basis of the present contract face value.
• Members of the exchange will be divided into two parts: non-settlement members and settlement ones.
• The exchange will introduce a limited position system to prevent price manipulation and excessive concentration of risk, with a limit of 2,000 contracts for investors.
• Trading will be conducted in remote form, without a physical trading hall.
• Non-settlement members will not have the right to settle trades, while settlement members will have the right to settle trades.

Statistics:

• Contract face value: 430,000 yuan
• Minimum access threshold: about 34,400 yuan
• Trading code: IF
• Multiplication factor: 300 yuan ($US37.90)
• Limited position volume: 2,000 contracts
• Risk reserve funds: 30 yuan/contract
• Earnest funds: 8%
• Trading type: remote

Sources:

• XIC (China Financial Futures Exchange) - No publication date provided