Iron ore futures contracts are limited by the maximum intraday price fluctuation, and the exchange sets a price limit for each futures contract.
The price limit of iron ore futures contract is a certain proportion of the settlement price of the previous trading day. Depending on whether the contract is a newly listed unfinished contract, a completed contract or a monthly delivery contract, different price restrictions will be implemented, as follows:
The exchange will adjust the price limit of each contract according to market conditions. For contracts that conform to the provisions of the Measures for Risk Control and Management of Dalian Commodity Exchange on adjusting the range of price limit, the range of price limit shall be determined according to the larger value of the specified range of price limit.
At present, the price limit of iron ore futures contracts is 8%. Customers can check the latest price limit and other parameters in the official website homepage of the Exchange-Business/Services-Business Parameters-Transaction Parameters-Transaction Parameters Table.
2. How to judge whether the iron ore futures contract has stopped rising on a certain trading day (there is no continuous quotation on one side of the price limit)? Where can I find out whether the relevant contract has stopped?
When a futures contract has a buy (sell) declaration with a stop price, a sell (buy) declaration without a stop price, or a deal is made as soon as a sell (buy) declaration is made, but a stop price is not offered within 5 minutes before the closing of the trading day, the futures contract is a unilateral discontinuous quotation (commonly known as a stop price).
Customers can check whether there is unilateral discontinuous quotation for a contract on the official website homepage of the Exchange-Market Data-Statistics-Stage Statistics-Contract Stop Loss Query.
3. When the iron ore futures contract rises (falls) on a certain trading day without continuous quotation, will its trading margin standard be raised? Will the price limit be raised?
When there is no continuous quotation for the first, second and third price limit of an iron ore futures contract in the same direction, the trading margin standard and price limit range will change according to the following rules:
Among them, m and p represent the margin standard and limit price of contract transactions without price limit and continuous quotation respectively.
4. Is there any position limit for iron ore futures? If yes, what are the warehouse restrictions for overseas customers to trade iron ore? Does the exchange have any position restrictions on futures brokerage companies and overseas brokerage institutions involved in iron ore futures?
Iron ore futures are subject to warehouse restrictions. The exchange stipulates the maximum amount of speculative positions in iron ore futures contracts that members or customers can unilaterally hold.
It should be noted that, unlike many international markets, long positions and short positions in iron ore futures contracts are calculated separately, and net position management is not done. Moreover, the iron ore futures price limit position is controlled in advance (whether it exceeds the position will be checked when entrusting). In addition, in different stages of iron ore futures contract trading, different positions are limited, and the futures contract positions entering the delivery month are strictly controlled.
At present, the Dashang Institute only stipulates the standard of limited positions for members and customers of iron ore futures non-futures companies, and members of futures companies and overseas brokerage institutions have no limited positions.
Customers can know the specific speculation limit standard of iron ore futures contracts on each trading day in the homepage of official website Stock Exchange-Business/Services-Business Parameters-Trading Parameters-Daily Trading Parameters.
5. Can investors exceed the speculative ceiling of the exchange? How to handle the business related to job exemption?
In order to better meet the market hedging demand and promote the market price discovery and hedging function, the exchange has relevant provisions on position exemption for hedging transactions and arbitrage transactions.
Hedging and arbitrage transactions that meet the requirements of the exchange may exceed the speculative limit of the exchange. However, these two types of customers need to apply to the exchange before exceeding the speculative limit standard of the exchange, and only after being approved by the exchange can they hold the amount exceeding the speculative limit standard according to the regulations.
For the specific application material requirements and audit principles of hedging and arbitrage position exemption, please refer to the relevant contents of official website Stock Exchange homepage-Business/Services-Business Guidance-Monitoring and Risk Control Business Guidance-Hedging Management Business and Arbitrage Business under Business Process and Information.
Where a client who entrusts an overseas brokerage institution to engage in futures trading applies for hedging arbitrage position exemption, it shall entrust its overseas brokerage institution to handle it, and the overseas brokerage institution shall entrust a member of the futures company to handle it.
6. A customer has multiple transaction codes in different futures company members. Are their positions calculated separately or together? Multiple entities in the same group participate in the transaction (multiple customers). Is the position calculated separately or in total?
A customer has multiple trading codes in different futures company members, and their positions are calculated by combination.
Whether the positions of multiple entities in the same group need to be summarized depends on whether they belong to the actual control relationship account. If it is an actual control relationship account, it needs to be declared to the exchange, and after the declaration, the exchange will consolidate and manage the positions of related accounts. See the Notice on Supervision Standards for Accounts of Actual Control Relationship for the identification standards of actual control relationship.
7. Is there a reporting requirement for large iron ore varieties? If yes, what are the criteria for large households to declare? How do overseas customers submit large accounts? Iron ore futures are subject to the large-scale declaration system.
When the speculative position of a customer's position contract of a certain variety reaches more than 80% (inclusive) of the speculative position limit set by the exchange, the customer shall report his capital and position to the exchange.
Customers must report through futures company members; If an overseas customer entrusts an overseas brokerage institution to engage in futures trading, it shall entrust its overseas brokerage institution to declare, and the overseas brokerage institution shall entrust a member of the futures company to declare.
8. Which customers need to report transactions in a programmatic way? How do programmatic trading customers report? What does the filing content include?
Customers who plan to use or have used programmatic trading need to report to the Exchange. Programmatic trading refers to a trading mode in which the computer automatically sends out trading signals or instructions according to the preset trading model, and has the functions of market analysis and risk management.
Customers must report to the exchange through members of the futures company; If an overseas customer entrusts an overseas brokerage institution to engage in futures trading, it shall entrust its overseas brokerage institution for the record, and the overseas brokerage institution shall entrust a member of the futures company for the record.
The contents of procedural transaction filing mainly include: trading strategy, using software functions, software access methods, software providers, compliance manipulation instructions, etc.
9. Which unit can a futures company refer to for mediation when it has a futures business dispute with an overseas trader or an overseas brokerage institution?
Article 21 of the Interim Measures for the Administration of Foreign Traders and Foreign Brokers' Engaging in Domestic Futures Trading of Specific Varieties stipulates that futures companies may submit futures business disputes with foreign traders and overseas brokers to mediation organizations such as China Futures Association and Futures Exchange.
10. What kind of penalties should overseas traders or overseas brokerage institutions bear if they violate the rules or have serious operational risks, which seriously endanger the order of China futures market and damage the legitimate rights and interests of traders?
If an overseas trader or an overseas brokerage institution violates regulations or has major operational risks, which seriously endangers the order of the China futures market and damages the legitimate rights and interests of traders, it shall be punished in accordance with the Regulations on the Administration of Futures Trading; Anyone suspected of committing a crime shall be transferred to judicial organs for criminal responsibility according to law.