(1) Correctly Understanding "Unilateral Market"
The Measures for the Administration of Risk Control of China Financial Futures Exchange stipulates that "unilateral market" refers to the situation that there are only buy (sell) declarations with stop-loss price and sell (buy) declarations without stop-loss price within 5 minutes before the contract closes, or the transaction is made as soon as the sell (buy) declaration is made, but no stop-loss price is set. To correctly understand the unilateral market, we need to pay attention to two points: first, we should pay attention to the period of "within 5 minutes before closing"; Second, the stop price can't be opened.
(2) Whether to execute compulsory lightening depends on the specific situation.
According to Article 62 of the Trading Rules of China Financial Futures Exchange, if there is no continuous quotation or the market risk is obviously increased due to the limit of continuous price increase and decrease in the same direction in futures trading, the exchange may take risk control measures such as adjusting the price limit, raising the trading margin standard and forcibly reducing the position to resolve the market risk after deliberation and approval by the Executive Committee of the board of directors of the exchange.
Article 10 of the Measures for the Administration of Risk Control of China Financial Futures Exchange stipulates that futures contracts have unilateral quotes in the same direction for two consecutive trading days (the first one is called D 1 trading day, the second one is called D2 trading day, and the trading day before D 1 trading day is called D0 trading day). If D2 trading day is the last trading day, the contract will be settled directly. If the D2 trading day is not the last trading day, the trading owner shall take one or more of the following risk control measures according to the market situation: raising the trading margin standard, limiting the opening of positions, limiting the withdrawal of funds, closing positions within a time limit, forcibly closing positions, suspending trading, adjusting the range of price limit, forcibly reducing positions or other risk control measures.
As can be seen from the above provisions, continuous unilateral market in the same direction is only a necessary condition to start compulsory lightening, but not a sufficient condition. When there is a continuous one-sided market in the same direction, the exchange may not necessarily start compulsory lightening, but may start compulsory lightening measures, other risk management measures and some risk control measures according to the specific circumstances. Investors need to pay attention to this.