ZCE Early Rice futures

From MarketsWiki
Jump to: navigation, search

The Zhengzhou Commodity Exchange obtained CSRC approval for rice futures in March 2009[1], and while it was expected to launch that contract as early as before the end of March[2], ZCE early rice futures actually started trading on April 20[3].

Each ZCE early rice futures contract represents 20 tons of deliverable grade early long-grain nonglutinous rice, which is defined as National standard Rice, GB1350-1999, 3rd grade (including) and above or substitutions at differentials specified by Delivery Rules of ZCE as good delivery, and its delivery date is set as the seventh business day prior to the last trading day in the contract month[4].

Each ZCE early rice futures contract is subject to a margin rate equivalent to at least 5 percent of contract value (e.g., 1018 yuan = 2035 yuan [ER909 last price on April 30, 2009] x 10 [tons/contract] x 5 percent) as well as a trading fee of 2 yuan per contract.

In May 2009, the first full month of trading, all ZCE early rice futures contracts traded an average daily volume of 5,473 contracts, as daily volume declined steeply from 130,306 on April 21 to 1,298 on May 22.

ZCE Rice Daily Volume.JPG


ZCE Early Rice futures
Exchange Zhengzhou Commodity Exchange
Settlement Cash settled
Contract Size 20 tons/lot
Pricing Unit 1 yuan (RMB)
Tick Value 20 yuan (RMB)
Contract Months January to December
Last Trading Day The seventh business day prior to the last trading day in the contract month.
Note: This contract is electronic ONLY -- no open outcry
  No Open Outcry Electronic
Trading Hours N/A 9:00 am to 11:30 am, 1:30 pm to 3:00 pm Beijing time
Ticker Symbol N/A ER
Price Limits N/A Within range of 4% above or below the settlement price of the previous trading day and the relevant provisions of Zhengzhou Commodity Exchange Futures Trading Risk-control regulation


References

  1. China approves early rice futures trading. Thomson Reuters.
  2. China likely to launch rice futures in March. Alibaba.com Limited.
  3. Zhengzhou Commodity Exchange Launches Early Long Grain Nonglutinous Rice Futures. mondovisione.
  4. Early Long-grain Nonglutinous Rice Futures Contract Specs. Zhengzhou Commodity Exchange.