China’s commodity exchanges have deployed measures, ranging from increased margin requirements and trade limits to a complete cessation of trade, to try to maintain market stability as the coronavirus panic invades the world .
Below is a list of some of the measures taken, affecting the trade in everything from eggs to gold among the world’s largest consumer of commodities.
CRUDE OIL / RUBBER
* The Shanghai International Energy Exchange (INE), in response to the collapse in global oil prices, increased the trading margin on its crude oil futures contract to 11% compared to the March 11 settlement and increased the trading limit to 10% effective March 12.
* INE has stated that it will waive delivery charges for its TSR 20 crude oil and rubber futures from April 10 this year until January 8, 2021 to ease financial pressure on market players .
* The Shanghai Futures Exchange (ShFE) increased the trading margin on TSR 20 rubber futures contracts from 11% to 10% after the March 23 settlement and raised the trading limit from 8% to 9%.
* The Shanghai INE said it would raise the margin requirement for the May contract on crude oil futures to 15%, effective from the April 14 settlement.
* ShFE said on March 13 that it is increasing trading margins and limits on a large number of commodity futures, including base metals, steel rebar, steel coils hot rolled and fuel oil.
* He said the trade margin for aluminum, zinc and lead futures would be further increased to 10%, compared to 8% after the March 23 settlement, while the trading limit on these contracts would be increased at 8% instead of 6%.
* The stock market said the trading margin for its copper contract would be further increased from 8% to 10% and from 6% to 8%. The margin requirement and limit for tin have also been raised to 10% and 8%, respectively, said ShFE.
* The stock exchange has announced that it will waive delivery charges for 16 products – including base metals, steel, gold, silver and fuel oil – from April 10 to January 8, 2021
* The Shanghai Gold Exchange (SGE) announced on March 16 that it will increase margin requirements and trading limits for gold and silver contracts after large price swings.
* The stock market said it would impose a one-day halt on trading on its Ag (T + D) silver contract on March 18, after a 13% contract drop, and that it would take action to reduce market risk.
* Margin requirements for gold contracts have been reduced to 8% from 10% following settlement on April 7, with their trading limits at 6% from 9% starting on April 8 . % of the settlement of April 7, and the 10% trading limit of 13% with effect from the next trading day.
* The Dalian Commodity Exchange (DCE) announced on March 4 that it would increase the limits and trading margins of its egg futures contracts for delivery in May and June.
* He then increased transaction costs for the April and May egg contracts. (https://bit.ly/2QnykWT)
* The DCE said it would increase the trading limit for styrene futures to 9% and margins to 11% compared to the March 19 settlement.
* On Friday, the DCE said it would adjust the trading limits for its polyethylene and polypropylene futures contracts to 6%, while setting margin requirements at 7% as of the settlement on March 23.
* DCE also announced that it will change the daily limit and margin requirements for its ethylene glycol futures contract to 9% and 11% respectively.
* The Dalian stock market adjusted trading limits for iron ore, coking coal and coke futures to 7% from 6% effective March 25.
* The DCE also raised the trading limits for palm oil and eggs futures to 6% from March 25.
* The exchange said it would adjust trading limits for soybean, soybean meal, soybean oil and PVC futures to 5% and change the margin requirements for these derivatives to 6 %.
* China’s Zhengzhou Commodity Exchange (ZCE) has raised the margin requirement for PTA futures from May to December to 7% from the March 25 settlement.
* ZCE also raised trading limits for PTA and methanol futures from April to December to 6% from March 26.
* The Zhengzhou Stock Exchange has raised the margin requirement for cotton futures to 7% and the trading limit to 6% since the March 25 settlement.
Source: Reuters (report by Min Zhang, Tom Daly, Emily Chow and Muyu Xu; edited by Susan Fenton, Barbara Lewis and Pravin Char)