(Yicai Global) March 13 -- As the crude oil futures listing date looms Shanghai International Energy Exchange Co. published specifics of the listing and trading of crude oil futures, per which, the former has arranged 15 contracts, with the trading margin 7 percent of contract value.
Crude oil futures will be listed for transactions from March 26, per the announcement. The exchange will arrange a call auction from 8:55 to 9:00 and open the market at 9:00. Trading hours are 9.00 to 10.15, 10.30 to 11.30 and 13.30 to 15.00 from Monday to Friday, and continuous trading hours are 21:00 to 2:30 the following day from Monday to Friday. No transactions will occur in the continuous trading hours on the first workday before legal holidays (excluding Saturdays and Sundays).
“Notably, to ensure the close relation between the last trading day and settlement, Shanghai International Energy Exchange -- a subsidiary of Shanghai Futures Exchange -- may adjust the last trading day in special months in which the Spring Festival and National Day holidays fall,” a staffer with the bourse explained.
The trading margin of the 15 contracts is 7 percent of the contract value; the range of the price limit is 5 percent and the price limit range in the first trading day is 10 percent of the benchmark price.
Special foreign non-broker participants and overseas customers can use foreign exchange funds as trading margins with the central parity yuan exchange rate of the day set by China Foreign Exchange Trade System as the benchmark price of its market value, the exchange said. US dollars can be used as a margin with a discount rate of 0.95, it further announced.
Shanghai International Energy Exchange has mandated that the market value of foreign exchange funds should be calculated before the market closes based on the central parity of the yuan exchange rate issued by China Foreign Exchange Trade System on the previous trading day to factor in exchange rate fluxes. The exchange will re-determine the benchmark price of forex funds used as a margin and adjust the post-discount amount for settlements.
Shanghai International Energy Exchange also requires that when the open interest of a contract reaches 200,000 lots (buy and sell), it will publish the trading volume, volume in buying and selling of the top 20 futures companies and special overseas brokers for the month.
Transaction fees are set at CNY20 (USD3.17) per lot, with the closing transaction on each day fee-free.