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China futures arbitrage
Customers engaged in hedging arbitrage trading, unilateral positions are not limited to 100 lots.

China Financial Futures Exchange disclosed yesterday that it has accepted and approved the first batch of hedging codes and corresponding hedging quotas, which means that investors will be able to hedge through the stock index futures market.

According to the relevant rules of stock index futures accounts and the Measures for Hedging Management, CICC has started to accept applications for hedging codes and quotas of stock index futures, and recently approved the first batch of hedging codes and quotas. It is understood that the first batch of customers who have been approved for hedging quotas include special legal persons (mainly brokers) and general legal persons, as well as natural persons. Approved hedging quotas include selling hedging quotas and buying hedging quotas.

In addition, in order to prevent market manipulation, the position limit system is implemented in stock index futures trading, and the unilateral position limit of customers engaged in single contract speculative trading is set to 100 lots, and the positions of customers engaged in hedging trading and arbitrage trading are not subject to this restriction.

It is reported that CICC has issued the Guidelines for the Application of Hedging Quota on May 7, clarifying the specific matters for customers to apply for hedging quotas. On the same day, CICC also issued the Business Guide for Trading Code Management of Special Legal Person Institutions, indicating that institutional investors represented by securities firms and funds will be able to formally open accounts and participate in stock index futures trading.

According to regulatory requirements, brokers can only participate in stock index futures trading for the purpose of hedging; Fund participation in stock index futures is mainly based on hedging in investment strategy, and speculation is strictly restricted.

Recently, GF Securities and CITIC Securities have successively announced that the board of directors has reviewed and approved the proposal of the company's participation in stock index futures trading, and the management of the company can handle the specific relevant procedures for securities self-operated business and securities asset management business to participate in stock index futures trading.

Analysts pointed out that the listing of stock index futures will exceed 1 month, during which the market transactions will be active, fully meeting the liquidity needs of hedging customers. It is expected that with more and more investors participating in hedging, the market transaction structure will be further optimized.