PRODUCT

The Exchange shall implement the margin policy. The margin shall refer to the funds paid, or the  warehouse receipts on par, foreign currency, treasury bonds or other negotiable securities submitted, by the futures traders subject to the applicable provisions and used for settlement and performance guaranty.
 

 


Iron ore risk control

Time Gradient Margins

As of the launch on DCE, through the commodity futures contracts entering the delivery month, DCE will gradually increase the trading margins of such contracts as per the time periods. As the delivery month approaches, the contract margins will be gradually increased by 10% and finally by 20%

Price Limit

DCE formulates the daily maximum price fluctuation ranges for any and all futures contracts, which is a certain proportion of the settlement price of the preceding trading day and may be adjusted by DCE as per the market conditions. Currently, the iron ore price limit is 8%

Position Limit Policy

DCE‘s position limit refers to the maximum amount of the speculative position of a certain futures contract on the unilateral calculation basis that may be held by the members or clients as prescribed by DCE. (The position limit applies to the non-futures company members and clients other than futures company members and overseas brokers, subject to unilaterally calculated position and non-net position management.)

Large Position Report Policy

There is a large position report requirement.

1. The reporting standards shall be no less than 80% of the speculative position quantity limit.

2. The reporting standards shall contain fund and position information.

3. The reporting flows are as follows:

(i) The clients report through a futures company member; and

(ii) The clients that engage an overseas broker to conduct futures trading shall report through its overseas broker which then report through the futures company member. (The names of the clients of the overseas brokers will be kept confidential from the members.)

Forced Liquidation Policy

1. The forced liquidation refers to one of the compulsory measures under which DCE conducts liquidation against the relevant position upon the member's or client's violation.

2. The circumstances of forced liquidation cover those caused by the member's insufficiency in funds, the client's excess position,violation or any other reasons.

3. The execution price of the forced liquidation is formed through the market trading.

4. The quotation price of the forced liquidation is the price limit prices.

5. On account of overseas clients' time difference and inconvenient fund transfer, the forced liquidation time is prolonged to 13:30.


On December10, 2012, China Securities Regulatory Commission (CSRC) officially approved Dalian Commodity Exchange to carry out Iron Ore futures transactions. On May 4, 2018 DCE officially launched the introduction of overseas traders business of Iron ore futures.

Dalian Commodity Exchange Iron Ore Futures Contract

Product

Iron ore

Trading Unit

100MT/Contract

Price Quote

CNY/MT

Tick Size

Tick Size

Daily Price Limit

4% of last settlement price

4% of last settlement price

Contract Months

Trading Hours

9:00 - 11:30 am, 13:30 - 15:00 pm Beijing Time, Monday - Friday, with extended hours trading session from 21:00 to 23:30 pm, and other trading hours announced by DCE

Last Trading Day

10th trading day of the delivery month

Last Delivery Day

3rd trading day after the last trading day

Deliverable Grades

In accordance with DCE Iron Ore Delivery Quality Standard

Delivery Location

The warehouses and delivery locations designated by DCE

Minimum Trading Margin

5% of the contract value

Delivery Form

Physical delivery

Exchange

Dalian Commodity Exchange



Par grade product quality requirements (Effective from I1809 contract)

Target

Quality Standard

Iron (Fe)

=62.0%

Silicon dioxide (SiO2)

≤4.0%

Aluminum oxide (Al2O3)

≤2.5%

Phosphorus (P)

≤0.07%

Sulfur (S)

≤0.03%

Trace elements

 

 

 

 

Lead (Pb) ≤0.02% 
Zinc (Zn) ≤0.02%
Copper (Cu) ≤0.20%
Arsenic (As) ≤0.02%
Titanium dioxide (TiO2) ≤0.80%
Chlorine + Fluorine ≤0.20%
Potassium oxide (K2O) + Sodium oxide (Na2O) ≤0.30%

Grain size

Not more than 20% are broader than 6.3 mm and not more than 35% are finer than 0.15 mm


-->

On December10, 2012, China Securities Regulatory Commission (CSRC) officially approved Dalian Commodity Exchange to carry out Iron Ore futures transactions. On May 4, 2018 DCE officially launched the introduction of overseas traders business of Iron ore futures.

Dalian Commodity Exchange Iron Ore Futures Contract

Product

Iron ore

Trading Unit

100MT/Contract

Price Quote

CNY/MT

Tick Size

Tick Size

Daily Price Limit

4% of last settlement price

4% of last settlement price

Contract Months

Trading Hours

9:00 - 11:30 am, 13:30 - 15:00 pm Beijing Time, Monday - Friday, with extended hours trading session from 21:00 to 23:30 pm, and other trading hours announced by DCE

Last Trading Day

10th trading day of the delivery month

Last Delivery Day

3rd trading day after the last trading day

Deliverable Grades

In accordance with DCE Iron Ore Delivery Quality Standard

Delivery Location

The warehouses and delivery locations designated by DCE

Minimum Trading Margin

5% of the contract value

Delivery Form

Physical delivery

Exchange

Dalian Commodity Exchange



Par grade product quality requirements (Effective from I1809 contract)

Target

Quality Standard

Iron (Fe)

=62.0%

Silicon dioxide (SiO2)

≤4.0%

Aluminum oxide (Al2O3)

≤2.5%

Phosphorus (P)

≤0.07%

Sulfur (S)

≤0.03%

Trace elements

 

 

 

 

Lead (Pb) ≤0.02% 
Zinc (Zn) ≤0.02%
Copper (Cu) ≤0.20%
Arsenic (As) ≤0.02%
Titanium dioxide (TiO2) ≤0.80%
Chlorine + Fluorine ≤0.20%
Potassium oxide (K2O) + Sodium oxide (Na2O) ≤0.30%

Grain size

Not more than 20% are broader than 6.3 mm and not more than 35% are finer than 0.15 mm


Standard iron ore futures contract of DEC