It is just some problems and details that special legal person institutions need to pay attention to when opening accounts for your reference. Next, it is more urgent and noticeable for institutional investors to participate in futures market investment operations, that is, the position limit system. In other words, the exchange implements the position limit system, that is, with the position limit system, it stipulates the maximum number of positions held by a member or a customer on a contract on the same day, that is, if it exceeds this number, it is impossible for the customer to remove the quantitative list. This is a position limit and an absolute quantity.

Then customers are allowed to open positions for different members, and the unilateral positions of a single contract exceed the limit of member positions after total calculation. That is to say, as an institutional investor, as an investment company, or as a large institutional investor, regardless of whether he opens an account with most members, his total code cannot exceed the requirements of the position limit system. Then, we will show you the specific quantity requirements of this position limit system here. Everyone knows his quantification.

In other words, the specific provisions of stock index futures contracts on the position limits of members and customers are divided into two categories. One is the customers engaged in speculative trading, and the unilateral position limit of a contract is 100 lots. In the trading rules of CICC issued for the first time in 2007, the position limit was 600 lots, which was reduced to 100 lots in order to ensure the smooth start of the market and high standards. If we calculate by 3000 points in the Shanghai and Shenzhen 300 Index, the value of a contract is 3000 points multiplied by 300 contract indexes, which is familiar to everyone, that is 900,000 yuan. Then the unilateral position limit of a customer and a contract for speculative trading is 90 million, which is equivalent to the limit of a single contract.

At the same time, we also know that after the launch of the Shanghai and Shenzhen 300 stock index futures, there are four contract transactions in the first phase. That is, the current month, the next month and the next two quarters, that is, at the same time and in the same direction, if an investor opens four contracts at the same time, the maximum position he can hold is 400 lots. That is about 360 million.

This is the first one. Position limit is the requirement for speculative customers to have absolute position limit. The second is that after a contract is settled, the unilateral position exceeds 100000 lots, and the unilateral position of the contract shall not exceed 25% of the total unilateral position of the contract at the settlement meeting and the next trading day. In other words, after the market size of a single clearing member reaches a certain level, it shall not exceed a quarter of the total market. This is the scale above 100000 lots. The position limit mentioned here is a specific requirement to remind institutional investors to pay attention to the position limit. Reasonable adjustment according to the position limit. Then it has been introduced to you in the previous application transaction code, that is to say, hedging and arbitrage have been added in the newly revised method, and you can apply for the corresponding customer code according to the investment objectives and requirements.

There is a specific regulation here, which is stipulated here in the position limit system. That is to say, the customer number position of hedging and arbitrage trading is implemented in accordance with the relevant regulations of the exchange and is not limited by speculative customers 100 lots. As long as you are recognized by the exchange and approved by the exchange, some needed hedging positions and arbitrage positions are not subject to the position limit. In other words, institutional investors present here have unique expertise and unique models in arbitrage trading. They should start executing the arbitrage trading code to the exchange as soon as possible, and then execute the corresponding arbitrage investment trading under the arbitrage trading code. In this case, this part of the position will not be limited by 100 lots of position limit speculation.

Then hedging transactions are the same, and there are some major breakthroughs in hedging transactions. In the past, hedging transactions were all in the original rules, and the design and design time limit were relatively short. In the newly revised rules, the design time of hedging transactions is relatively long. Then, instead of contracts and directions, supplementary choices can be made on different contracts to better meet the hedging needs of institutional investors. Therefore, hedging transactions and arbitrage transactions now provide a lot of application needs, which may be that institutional investors may need to know as soon as possible in the next stage and start preparations as soon as possible.