(Reprinted from: Yide Futures)
Casted aluminum alloy futures will be listed and traded from June 10, 2025 (Tuesday), with a call bidding from 08:55 to 09:00 on the same day and will open at 09:00. Cast aluminum alloy options will be listed and traded from 21:00 pm on Tuesday, June 10, 2025, and will be auctioned from 20:55 to 21:00 on the same day and will open at 21:00.
Today, let’s learn about the guidelines for futures and regulations on cast aluminum alloy futures trading on 7 questions.
1. How is the trading margin collected for cast aluminum alloy futures?
The minimum trading margin for cast aluminum alloy futures is 5% of the contract value. During the trading process of cast aluminum alloy futures contracts, when the position volume reaches a certain level, the delivery period is approaching, and the cumulative increase and decline rate for several consecutive trading days reaches a certain level, the exchange can adjust its trading margin level according to market risks.
The exchange shall formulate different trading margin collection standards based on different stages of listing and operation of a futures contract (i.e., from the date of new listing to the last trading day). The specific standards shall be implemented in accordance with the provisions of the “Shanghai Futures Exchange Cast Aluminum Alloy Futures Business Rules” and the “Shanghai Futures Exchange Risk Control Management Measures”.
2. What is the maximum daily price fluctuation range of cast aluminum alloy futures?
The exchange implements a price limit system, and the exchange shall formulate the maximum daily price fluctuation range of each listed futures contract. The lowest daily price fluctuation range of cast aluminum alloy futures contracts is ±3% of the settlement price of the previous trading day. When the futures contract price has a continuous daily limit rise and fall in the same direction, a national statutory holiday, and the exchange believes that the market risks are significantly changed, etc., the exchange can adjust its daily limit according to the market risk.
3. What is the exchange's position limit for cast aluminum alloy futures for members or customers?
The exchange implements a position limit system. Position limit refers to the maximum number of unilateral positions held by members or customers in a futures contract specified by the exchange. Hedging positions shall be subject to approval system and shall not be subject to the position limit.
The position ratio and position limit of futures company members, non-futures company members and customers of cast aluminum alloy futures contracts for different periods shall be implemented in accordance with the following table:
Note: The position volume and limit amount in the table are calculated in one-way; the limit ratio of futures company members is the base
4. Under what circumstances will the exchange forcefully close its positions on members or customers?
Forced closing of positions refers to a compulsory measure by the exchange to close the positions when members and customers violate regulations.
When the balance of member settlement reserves is less than zero, and fails to be filled within the specified time limit, the position volume exceeds its position limit regulations, the position of related products is not adjusted to the corresponding integer multiple as required within the specified time, and is punished by the exchange for forcibly closing positions due to violations, etc., the exchange shall forcefully close its position.
5. How to apply for a hedging position from the exchange?
Customers who need to conduct hedging transactions shall declare to the futures company member of the opening account. After the futures company members conduct an audit, they shall go through the declaration procedures with the exchange in accordance with the “Shanghai Futures Exchange Hedging Trading Management Measures”; non-futures company members shall go through the declaration procedures directly with the exchange.
Applications for hedging trading positions in general month of cast aluminum alloy futures shall be submitted before the last trading day of the second month before the delivery month of the contract involved in the hedging; applications for hedging trading positions near the delivery month shall be submitted between the first trading day of the third month before the delivery month of the contract involved in the hedging to the last trading day of the first month before the delivery month, and overdue exchanges will no longer accept them.
6. What are the principles for approval of hedging trading positions on the exchange?
The exchange reviews the application of hedging trading positions in general months based on whether the entity's qualifications meet, whether the hedging product, trading position, trading quantity, hedging time is in line with its production and operation scale, historical operating conditions, funds, etc., and determines its hedging trading positions in general months.
The exchange's application for hedging trading positions near the delivery month will determine its hedging trading positions near the delivery month based on the trading positions and quantity of the member or customer, spot operating conditions, position status of the corresponding futures contract, inventory of goods available for delivery in the exchange designated delivery warehouse, and whether the futures and spot prices diverge.