The compulsory liquidation system is a case-by-case approach adopted by a single investor or futures company to deal with illegal positions or insufficient margin; The compulsory lightening system is a risk control method for all investors who hold reasonable positions in the market and have no violations or insufficient margin.

The compulsory lightening system refers to the emergency measures taken by CICC to quickly and effectively resolve market risks and prevent a large number of members from defaulting when there are particularly serious risks such as unilateral prices rising (falling) in the same direction for two consecutive trading days.

For domestic stock index futures, the method of compulsory lightening is: after the close of the second trading day with continuous ups and downs in the same direction, according to the stop price of the trading day, the unfinished transactions that have been declared at the stop price of the ups and downs in the trading system are closed and declared, and the profitable customers with net positions of the contract are automatically matched according to the position proportion. It should be emphasized that the implementation of compulsory lightening is after the market closes on the same day, and the price is the price with price limit. If the same customer holds a two-way position, the closing declaration of the net position will participate in the calculation of forced lightening, and other closing declarations will automatically hedge their reverse positions. Therefore, for loss-making customers, the premise of mandatory reduction is to declare. Without declaration, there is no qualification for compulsory lightening, and there is no opportunity to close positions and reduce risks.

situation

In a certain year 1, 15, 16 (Monday and Tuesday), the Shanghai and Shenzhen 300 stock index futures contracts showed daily limit for two consecutive days, which was serious. According to the regulations, CICC started the compulsory lightening system for the first time after the market closed on June 65438+ 10/6, reducing the market position 1478 lots.

65438+1October 17 A trading customer with the highest profit ranking turned on his computer and found that his 20 contracts in February had been forcibly closed at the daily limit price of 16, although he didn't want to close his position. Similarly, another locked-in customer found that his 20-hand empty contract in February was also forcibly closed at the daily limit price. This customer is anxious that the price is blocked at the daily limit, and his empty order can't stop loss. This time, there is an unexpected joy of being "liberated". This is the first time that CICC has implemented the compulsory lightening system, and they became the first batch of people who were forced to "take profit" and "stop loss" respectively (see the figure below).

Figure K-line chart of June contract date of Shanghai and Shenzhen 300 stock index futures

This system has strong characteristics of "protecting the weak" and "robbing the rich to help the poor". We can reduce the losses of investors who can't close their positions because of ups and downs by reducing the income of investors who make more profits. Because any investor who holds profitable positions is unwilling to be closed when trading stops, the exchange will strictly and fairly allocate the number of positions to be reduced according to the order of profitability and the proportion of positions held.