Heavy! The rules for pig futures contracts have been officially announced

On February 31st, the Shanghai Stock Exchange officially announced the pig futures contracts and related rules for trading on the market from Friday, January 8th, 2021, and announced to the market the specific settings for the parameters for the listing of pig futures.
1. The contract rules and related parameters of pig futures from the notice issued by large companies on matters related to the listing and trading of pig futures contracts, the relevant matters issued in this release include the listing trading time of pig futures, trading contracts, trading margin and the range of ups and downs, trading limits, transaction fees, delivery fees, standard warehouse order transfer payment business fees, storage fees and other content.
under the listing arrangement, pig futures will be traded from Friday, January 8, 2021.
trading hours are monday to Friday (09:00-10:15, 10:30-11:30 and 13:30-15:00).
pig futures were LH2109, LH2111 and LH2201.
transaction fee is two-tenths of the transaction amount, and the in-day transaction fee is four-tenths of the transaction amount.
delivery fee is 1 yuan / ton, not charged; Storage fee is 5 yuan / ton days.
standard warehouse bill transfer payment business handling fee is 0 yuan / ton.
each trading day, the exchange will publish the relevant volume and positions of the contract in accordance with the regulations.
in the initial stage of listing, in order to ensure stable trading, strict control of risk, large companies will pig futures contracts up and down the board range set to the previous trading day settlement price of 8%, the first day of the new contract listing up and down board range of 16% of the benchmark price; Speculative trading margin level is 15% of the contract value and hedging trading margin level is 8% of the contract value.
the same time, pig futures implement a trading limit system, non-futures company members or customers in pig futures on all contracts on a single day to open positions not more than 500 hands.
the one-day opening volume refers to the number of open positions and the number of open positions sold on all month contracts on the same day by non-futures company members or customers.
the number of open positions for hedging transactions is not limited.
August 2, 2021, the exchange began to process standard warehouse order registration business.
of pig futures is 3000 yuan / 3 hands, less than 3 hands by 3 hands charged.
shall be entrusted by the exchange to appoint a quality inspection institution for inspection, and the inspection fee shall be borne by the exchange for the time being.
the listing benchmark price of the new contract, the delivery area, the regional water rise, the designated quality inspection institution, the designated delivery warehouse and the designated vehicle board delivery place shall be notified by the exchange before listing.
2, pig futures contract is good? From the published pig futures contract rules, large traders close to the spot market habits, with reference to the "slim pig live quality assessment (GB/T32759-2016)" index system, using simple and effective appearance, weight and other indicators to design pig futures delivery quality index system.
It is understood that in spot trade, pig quality judgment mostly depends on subjective experience, in order to make the trading varieties in line with the standardized law of the futures market, the innovative implementation of pre-management of pig quality, will rely on subjective experience judgment and testing longer indicators, as well as part of the slaughter feedback indicators into the pre-management category.
Through spot market research and combined with a large number of pig slaughter data conclusions, large commercial enterprises will be pig delivery warehouse pre-management indicators as enterprise size, breeding varieties, out of the column before the control of food, back thickness, disease detection capacity five aspects, and through the delivery warehouse daily supervision and other inspection methods to ensure that the delivery warehouse meets the requirements of the pre-management indicators, simplify the delivery process, reduce delivery quality disputes.
in the delivery mode, based on the current development of the spot market, pig futures using physical delivery.
according to professionals, at present, China's pig industry chain to live trade-oriented, most of the pig sales through traders to complete, active trade, full competition, there is no market monopoly.
the same time, according to the characteristics of live pig trade is strong, large-scale aquaculture enterprises so the breeding management and sales model based on the determination of delivery in the column link.
Pig futures to implement plate delivery and factory warehouse single delivery parallel delivery mode, daily selection of delivery and one-time delivery combined with the period of transfer delivery, to ensure the quality of delivery of pigs, improve delivery efficiency, and reduce the spread of disease.
in the design of the delivery area, the benchmark delivery of pig futures is Henan, and the main pig breeding areas in China are set up as pig futures delivery areas.
the first delivery warehouses of pig futures in Henan, Shandong, Jiangsu, Hubei, Anhui and Zhejiang.
pig futures are listed, the company will add delivery warehouses according to its operating conditions and market needs.
In terms of wind control, according to the historical price fluctuation characteristics of pig spot, the stock futures generally rose and fell in the month and the minimum trading margin ratio was set to 4% of the settlement price and 5% of the contract value of the previous trading day, respectively; According to the idea of strictly limiting positions, the general month of pig futures and delivery months to implement an absolute limit of positions.
for non-futures company members and clients, the limit for positions from the time the contract is listed to the month before delivery is 500 (200 for the July contract); From the first trading day of the month before the delivery month to the 10th trading day, the position limit is 125 (50 contracts in July); From the 10th trading day of the month before the delivery month to the last trading day of the month, the position limit is 30 (10 contracts in July); After entering the delivery month, the position limit is 10 hands (5 hands in the July contract). the relevant person in charge of the
major trading house said that the big business on the basis of full research on the pig industry to complete the design of the existing contract rules, design and strive to be close to the needs of the industry and trade habits, in order to ensure the applicability of the contract rules at the same time strictly control risks, adapt to the laws of the futures market, to ensure the smooth listing of pig futures and functional role.
he stressed that the strict setting of pig futures wind control, is to ensure that China's first live delivery futures varieties "steady start", strict control of all kinds of risks.
" such as the position limit, the exchange fully consider the average monthly spot size of spot farming and trading enterprises to set the delivery month position limit, but also take into account the pig price factors more, so the use of a more stringent position limit system to ensure the smooth operation of the market; In the event of a unilateral continuous rise or fall, etc., the Exchange may, in accordance with the rules, take the measure of 'unilateral or bilateral, same proportion or different proportion, some or all members increase the trading margin'.
" the above-mentioned person in charge of the big business, pig futures hard-won, hope that the market participants to double cherish, rational, standardized participation in the futures market, and jointly care for the smooth operation and healthy development of pig futures.
said that the listing of pig futures for the service of the pig industry is of great significance.
, by playing the role of price discovery, to provide the market with open, transparent and continuous price reference, is conducive to aquaculture enterprises to manage the uncertainty at both ends of supply and demand, accelerate the pace of capacity adjustment at the current stage.
On the other hand, pig breeding enterprises can use pig futures for hedging, transfer the risk of price fluctuations, reasonably control the scale of breeding, and re-production and expansion of production, so as to optimize the allocation of resources through market-oriented means to promote the long-term healthy development of the industry.
pig futures from listing to function play, need a gradual cultivation process, in the process needs the understanding, support and cooperation of all parties.
market participants should, on the basis of fully understanding and mastering the rules of pig futures contracts, accurately understand and grasp the wind control arrangement, and make good use of pig futures tools to help the high-quality development of Pig Farming Industry in China.
3, who is the main market force? Tian Yaxiong, chief analyst at Citic Capital Futures, said the 25 yuan/kg listing pricing option would be closer to the market's average forecast for the 2021 pig price hub.
research and data analysis found that farmers generally believe that the risk of falling pig prices is concentrated in the second quarter of 2021, while the most recent contract on the futures market is the September contract.
From the pig market consumption characteristics, September itself is a seasonal peak season month, after the listing of pig futures, it is not appropriate for investors to hedging, pig farming enterprises are expected to wait and see and quickly set up their own hedging team, research future hedging strategy and make plans.
addition, pig futures hedging will require a higher amount of margin preparation.
a farming enterprise in Henan Province, for example, if the previous 30 million head of the full hedging plan, need to prepare at least 10 billion hedging funds.
As a comparison, in 2019 the company intends to use the funds for commodity hedging not more than 300 million yuan, taking into account speculative trading per lot of more than 60,000 yuan margin requirements, it is expected that the main participants in the pre-market pig futures market is private equity institutions.
" pig futures market attention is very high, and the upstream feed industry chain has more varieties have a very mature futures trading environment, for pig futures listing and trading has played a very good role in paving and promoting.
" Guangfa Futures Agricultural Products Researcher Judy told reporters that from the pig futures contract size, pig futures contracts per lot of 16 tons, the current benchmark spot price of about 36 yuan / kg, to the large traders announced the speculative trading margin level of 15% to calculate, the amount of one-handed margin is about 86,400 yuan, is the most expensive commodity futures on the market, speculation threshold is high.
this may limit the activity of initial contracts, particularly individual investors.
" for industrial enterprises, pig futures after listing will have a good price discovery and risk hedging effect, can help industrial enterprises adjust production plans, lock in costs and profits in advance.
now pig price volatility is large, there is a risk of falling prices in the long term, so aquaculture enterprises will have a strong hedging needs, especially head enterprises.
addition, considering that the listing contract 2109 is far away from the current, it is expected that the industrial enterprise pre-hedging scale will not be too large.
," Judy said.
, pig industry and pork prices are related to people's livelihood, involving many industries, a wide range of impact.
in recent years, domestic pork prices fluctuate greatly, the vast number of investors, investment institutions and social capital actively involved, pig futures by the market wide attention.
Wu Qingbin revealed that recently, domestic corn, soybean meal and other feed raw materials prices have increased significantly, but the magnitude is far less than the increase in pig prices, so pig grain ratio is still at a high level, breeding profits are still relatively rich.
according to his investigation, relative to the cost side, farmers and farmers more value the safety of farming, some farmers in the holiday demand season after the arrival of the column to profit as soon as possible.
the current pig contract price has not been announced, but we can based on the current spot price to speculate on the future development trend of pig futures prices.
present, the domestic pig spot price is higher, the national average pig price is close to 36 yuan / kg, although the listing contract is far away, but the market will have a certain price expectations to consider.
if the futures price is more watered down, the opening may rise in price.
addition, the current spot market price volatility is large, will also lead to large fluctuations in the initial futures market, so in the contract margin, opening restrictions, etc. , large companies have been in advance of more consideration.
," Wu Qingbin said