CFFEX Launched Treasury-Bond M88 game APK Trading on September 6, 2013

The China Financial M88 game APK Exchange (the “CFFEX”) opened the long-anticipated trading in treasury-bond M88 game APK on September 6, 2013.

Trading in treasury-bond M88 game APK were suspended in China since a scandal in the 1990s, but the Chinese Securities Regulatory Commission (the “CSRC”) has been preparM88 game APKg the re-launch sM88 game APKce last year. The move aims at offerM88 game APKg ChM88 game APKese M88 game APKvestors more tools to hedge their risk, but the regulator and the CFFEX are proceedM88 game APKg cautiously.

In the past two weeks, the CFFEX has issued a number of trading rules to lay out the detailed mechanism for treasury-bond futures trading, including Detailed Trading Rules for the Five Years Treasury-Bond Futures, Detailed Settlement Rules for the Five Years Treasury-Bond Futures, Implementing Guidance of the Five Years Treasury-Bond Futures Contract Large Position Reporting, and Guidance of Information Release on Treasury-Bond Futures Trading (collectively, the “Trading Rules”). The Trading Rules set the minimum margin requirements of treasury-bond futures trading at 3 percent in ordinary times, 4 percent from the last trading day preceding the 10th day of the month prior to the delivery month, to the last trading day preceding the 20th day of the month prior to the delivery month, and 5 percent from the last trading day preceding the 20th days of the month prior to the delivery month; and set position limits for one side (buy/sell) position of a particular treasury-bond futures contract at 1000 lots in ordinary times, 500 lots from the last trading day preceding the 10th day of the month prior to the delivery month, to the last trading day preceding the 20th day of the month prior to the delivery month, and 100 lots from the last trading day preceding the 20th days of the month prior to the delivery month. The Trading Rules also establish a first trading day price limit of 4% from the benchmark price (i.e. the maximum amount in which the price may increase or decrease from the benchmark price of a particular treasury-bond futures contract) on the first listing day of any treasury-bond futures contract ,or, if no trading executed on the first listing day, on the first trading day on which any trading is executed; and a price limit of 2% (i.e. the maximum amount in which the price may increase or decrease in any single trading day) for all other trading days.

To support the treasury-bond M88 game APK trading, the CSRC amended its Rules on Establishing Financial M88 game APK Investors Suitability System on August 2, 2013, to extend the coverage of investor suitability requirement to treasury-bond M88 game APK trading.

In addition, on August 21, 2013, the CSRC issued the Guidance for Securities Company Participating Stock Index M88 game APK and Treasury-Bond M88 game APK Trading allowing securities companies to trade stock-index M88 game APK and treasury-bond M88 game APK with their proprietary funds and clients’ funds under entrusted management. Securities companies that do not have proprietary securities trading qualification may make proprietary trading of treasury-bond M88 game APK only for hedging purposes. To begin with, only M88 game APK brokerage companies, mutual funds, accredited individual investors and securities companies are currently allowed to trade treasury-bond M88 game APK, while banks and insurance companies have not secured approval to trade treasury-bond M88 game APK from their respective regulators.