With the launching of the night trading just around the corner, today Dalian Commodity Exchange (DCE) released the information on Wechat and Weibo to remind the members and investors to pay attention to the matters related to the night trading and reply to the questions that the investors are concerned about such as the operation of forced liquidation and the arbitrage trading instructions during the night trading.
DCE reminds that after the introduction of the night trading, a trading day is a complete trading session starting from the night trading period of the previous natural day until the end of the day trading period of the day, with the night trading period as a separate night trading section and the day trading period including the first, the second and the third section. When there is a legal holiday, the night trading will not be conducted from 21:00 of the first natural day prior to the legal holiday to 2:30 of the next day, and the normal night trading will be conducted on the first natural day after the holiday.
In terms of the call auction, the opening call auction for the products of the night trading will be carried out in the five minutes prior to the night trading period (20:55-21:00), and the call auction will no longer be conducted in the day trading period; if there is no night trading on the day, the call auction will be postponed to the five minutes before the day trading period of the next trading day (08:55-09:00). The call auction for the products not listed on the night trading will be carried out in the five minutes prior to the day trading (08:55-09:00).
With regard to the risk management, in the night trading section the forced liquidation shall be performed by the members themselves in the first place. Except the cases of the special provisions of DCE, as for the products listed on the night trading, the time limit for the self-liquidation is within the night trading section and the first trading section; for the products not listed o the night trading, the time limit for the self-liquidation is within the first trading section. If the members fail to complete the liquidation in the abovementioned time limits, the liquidation will be enforced by DCE. The members with the instruction for forced liquidation because of the settlement margin less than zero are prohibited from opening and trading before the margin is supplemented to meet the minimum settlement margin balance.
In terms of trading instructions, the instructions of calendar spread arbitrage for RBD Palm Olein and Coke can be issued during the night trading period, but the instructions of inter-commodity spread arbitrage cannot be used for the time being. As the inter-commodity spread arbitrage requires that the two products with the arbitrage relationship should be available for trading in the same time section, the orders of inter-commodity spread arbitrage for the RBD Palm Olein and Coke placed in the night trading section will be prompted as the error message of inconsistency of trading status for the products on the orders system, and the orders will not be successfully placed into effect. With the night trading to be introduced for other products in the future, when all the arbitrage products are the night trading products, the orders of inter-commodity spread arbitrage will be put into normal use.
DCE also reminds that the businesses of applying for, alteration of and cancellation of the member seat, the business of transferring funds out, the businesses of offset by securities and offset relief, the delivery, the standard warehouse receipt, the non-standard warehouse receipt, the bill of lading and other related businesses can only be handled in the day trading period rather than the night trading period. The investors are requested to learn and master the rules and systems related to the night trading as soon as possible, actively study and adapt to the changes to the trading modes caused by the night trading as soon as possible, and effectively prevent the risks for positions and trading after the introduction of the night trading.
A DCE official stressed that it is one of the means for the international futures exchanges to expand the businesses by extending the current trading periods to cover more time zones. Under the new situation of increasingly deepened economic globalization and the international development of the future market, the international political, economic, financial, industrial and market impacts are more directly transferred to the domestic market prices, which has put forward new requirements for the domestic futures markets to extend trading hours, cover more time zones to serve the market hedging and adapt to the international market competition. Therefore, with the prudent and active principle and the guideline of “Trials Preceding Promotion”, DCE introduces the night trading. In terms of the specific guideline, the launched products combine the consideration in the products with the advantages in striving for the pricing power on the international market in the future and the products with highly international relevance; with regard to the detailed rules for related businesses, the risk controllability and the compatibility with the existing systems have been taken into account in accordance with the internal and external conditions. In the future, on the basis of sound operation and accumulating experience, DCE will introduce more other products suitable for the night trading as soon as possible, design trading modes to cover more trading hours, and vigorously carry out the related system building and market promotion.