You are here: Home > Business > Banking and Finance

Index futures tweaked to curb trading risks

: 0 Comments Print E-mail China Daily, January 20, 2010

Adjust font size:

China Securities Regulatory Commission announced the planned launch of index futures earlier this month and formal trading is expected to start at China Financial Futures Exchange in April. [China Daily]

Maximum price fluctuation set at 20% above or below listing

China Financial Futures Exchange (CFFEX) yesterday announced revised trading rules for stock index futures, which investors are expected to begin trading in April.

The revision raises the minimum trading margin for index futures from 10 percent to 12 percent and reduces the single-day maximum holding of futures contracts to 100 from 600, which was previously set during the trial period.

CFFEX issued index futures' trading rules in June 2007, and simulated trade has been conducted at CFFEX since October 2006.

Shanghai-based CFFEX also set the maximum price fluctuation at 20 percent above or below the initial listing price on the first trading day of the quarterly month. CFFEX officials say the revised rules are open for public comment until Jan 29.

"The main functions of the revision are to ensure the smooth launch of index futures, effectively control trading risks and improve the risk-management mechanism," said a CFFEX spokesman at a press conference yesterday.

1 2 Next