How do investors apply for hedging quota? The exchange implements a hedging quota approval system. If a customer applies for a hedging quota, he or she shall declare it to the member (futures company) with which he opened an account. The member (futures company) shall review the application materials and then go through the application procedures with the exchange.

Members (trading members engaged in proprietary business, that is, certain institutional investors) who apply for hedging quotas must directly apply to the exchange.

Members or customers who apply for hedging quotas should fill out the "China Financial Futures Exchange Hedging Quota Application (Approval) Form" and submit the following application materials to the exchange:

< p>(1) Natural person customers should submit a copy of their ID card, and member or legal person customers should submit a copy of their business license, organization code certificate, and audited financial reports for the past two years;

(2) Spot transactions in the past six months;

(3) Applicant’s hedging transaction plan;

(4) Description of applicant’s historical hedging transactions ;

(5) Verification statement by the member (futures company) on the authenticity of the applicant’s materials;

(6) Other materials specified by the exchange.

The exchange will review and approve the hedging quota based on the hedging applicant’s spot market transactions, credit status and market conditions. The hedging quota is valid for 6 months from the date of approval and can be used repeatedly during the validity period.

Since there are four contracts trading at the same time, in order to improve the efficiency and effect of hedging, the approved hedging quota can be used in multiple months of contracts, and each contract has the same direction (referring to buying hedging). direction or sell hedging direction) the total number of hedging positions shall not exceed the approved hedging amount for that direction. New hedging quotas approved within the last 10 trading days of a certain contract cannot be used on that contract.

The exchange has the right to adjust the hedging amount according to market conditions. When the applicant needs to adjust the hedging limit, he or she shall submit a written application for change to the exchange in a timely manner. The adjusted hedging limit is valid for 6 months from the date of approval.