On July 28, 2023, China Financial Futures Exchange (CFFEX) announced the launch of Changfeng Program 2023, a support program to promote the participation of mid- and long-term institutional investors, on August 1, 2023. The Changfeng Program aims to form synergy in promoting the participation o...
Recently, China Financial Futures Exchange (CFFEX) officially completed the registration of 30-year China government bond (CGB) futures contracts (the “Contracts”) with the China Securities Regulatory Commission (CSRC). Today, CFFEX released the 30-year CGB futures contract specifications and relevant rules, and the Notice on the Listing and Trading of 30-Year China Government Bond Futures Contracts (the “Notice”). The first batch of three contracts will be listed for trading on April 21, 2023.
On March 17, 2023, CFFEX published the draft 30-year CGB futures contract specifications and relevant rules on its website for public consultation. During the consultation period ended March 23, 2023, CFFEX extensively solicited comments and suggestions from market participants and received general approval.
According to the Notice, the Contracts will be listed for trading on April 21, 2023. The first batch of Contracts to be listed include TL2306, TL2309, and TL2312. CFFEX will publish the listing benchmark prices, deliverable CGBs and their conversion factors prior to the listing of the Contracts. The trading margin of the Contracts shall be 3.5% of the contract value. For long and short positions held under the same client number through the same member, either in the same product or across different products of 2-year, 5-year, 10-year and 30-year CGB futures, margin is collected solely from the side for which a larger amount of trading margin is required. The limit up/limit down on the listing day shall be ±7% of each contract’s listing benchmark price. Transaction fee shall be RMB 3 per lot, and is currently exempted for closing out intraday positions. Delivery fee shall be RMB 5 per lot, and a 50% reduction shall apply until December 31, 2023. The maximum size of limit orders in the Contracts shall be 50 lots, and the maximum size of market orders shall be 30 lots.
A CFFEX official commented that preparations for the listing of 30-year CGB futures contracts are completed. Next, under the leadership of the CSRC, CFFEX will steadily proceed with the listing of 30-year CGB futures contracts to ensure a smooth product launch and stable market operations.
With the approval of the China Securities Regulatory Commission (CSRC), China Financial Futures Exchange (CFFEX) adjusts the fees for closing out intraday positions in CSI 300, SSE 50, CSI 500 and CSI 1000 Index futures contracts to 0.023% of the notional value effective March 20, 2023.
The adjustment aims to further reduce transaction costs and facilitate equity index futures market functioning, and is expected to improve market liquidity to better cater to the risk management demands of various types of investors. This will also help attract more medium and long term investment into the capital market, further enhancing market resilience and competitiveness.
Next, in line with the CSRC’s policy of "system building, no intervention, and zero tolerance” and the principle of "Four Awes" and "One Synergy", CFFEX will continue to strengthen market risk monitoring and trading supervision, so as to maintain the safe and stable operations and promote the high-quality development of the financial futures market.
In 2022, with the leadership of the China Securities Regulatory Commission (CSRC), the support of relevant ministries and commissions of the central government, and the joint efforts of market participants, China Financial Futures Exchange (CFFEX) maintained a stable, orderly, and well-functioning China government bond (CGB) futures market, which played an active role in serving the high-quality development of the bond market and the real economy. To award exemplary performance and promote market development, CFFEX recently organized the appraisal for outstanding institutions and individuals participating in the CGB futures market for the year 2022. After review and selection, 15 institutions received the Outstanding Institution Award, 3 received the Best Progress Award, and 6 received the Medium and Long-term Capital Service Award. In addition, 23 individuals nominated by the award-winning institutions received the Outstanding Trader Award.
With 2023 being the first year to comprehensively implement the guiding principles of the 20th CPC National Congress, CFFEX’s priority for the year is to pursue higher-quality development of the financial futures market. In line with the decision and arrangements of the Central Economic Work Conference, the requirements of the CSRC Annual Work Conference and the principle of “Four Awes” and “One Synergy”, CFFEX will continue to enrich the CGB futures offerings, facilitate participation by banks, insurance companies and other institutions, and guide various types of medium and long-term capital to use CGB futures in risk management. With these efforts, CFFEX aims to comprehensively promote the high-quality development of the CGB futures market, and enhance the capacity of the financial sector to serve the real economy, thus further contributing to a standardized, transparent, open, dynamic and resilient capital market.
On February 22, China Financial Futures Exchange (CFFEX) released the list of outstanding market makers and outstanding members in market making services for the year 2022. A total of 32 market makers received Gold, Silver, and Bronze Market Maker Award for China government bond (CGB) futures and equity index options, and Outstanding Contribution Award for Market Making in New Equity Index Options. Another 25 members received Outstanding Services Award for CGB futures and equity index options market making. CFFEX hereby congratulates all award-winners and encourages all market makers to make ever-greater contributions and achievements in promoting the new development paradigm and high-quality development.
2023 is the opening year for implementing the decisions of the 20th CPC National Congress, and a crucial year for implementing the Strategic Plan of China Financial Futures Exchange (2022-2024). Embarking on a new journey, CFFEX will adhere to the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the decisions of the 20th CPC National Congress. CFFEX will continue to strengthen its commitment to the “Four Consciousnesses”, the Four-Sphere Confidence and the “Two Upholds”; put the directives of the Central Economic Work Conference and the CSRC Annual Work Conference into action; and follow the policy of “system building, no intervention, and zero tolerance” and the principle of “Four Awes” and “One Synergy”. Breaking new grounds while keeping on the right track, CFFEX will continue to improve intrinsic stabilizing mechanisms, enhance market vibrancy and resilience and bolster the high-quality development of the financial futures market, thus contributing to building a modern capital market with Chinese characteristics.