China commodity exchanges act to contain virus-driven volatility

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China’s commodity exchanges have rolled out a series of measures – from raising margin requirements and trading limits to halting trade completely – to help maintain market stability as coronavirus panic spreads across the globe.

Below is a list of some of the actions taken, affecting trade in everything from eggs to gold in the world’s biggest commodities consumer.

CRUDE OIL/RUBBER

– The Shanghai International Energy Exchange (INE), responding to a collapse in global oil prices, raised the trading margin on its crude oil futures contract to 11% from settlement on March 11, and hiked the trading limit to 10% from March 12.

– Last Tuesday, the INE said it would waive delivery fees for its crude oil and TSR 20 rubber futures from April 10 this year until Jan. 8, 2021 to ease financial pressure on market participants.

– The trading margin on TSR 20 rubber futures will be increased to 11% from 10% after settlement on March 23 and the trading limit raised to 9% from 8%, according to a notice on Thursday.

SHFE

– The Shanghai Futures Exchange (ShFE) said on March 13 it was raising trading margins and limits on a large number of commodity futures contracts starting this week, including base metals, steel rebar, hot-rolled steel coil and fuel oil.

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