Why an EFP Transaction Ultimately Fails and the Prompt of “the Trading of XX Contract Has Been Closed” Is Given even if the EFP Report Submitted Close to the Submission Deadline Has Been Confirmed by the Buyer of the Futures Contract?
The reason is that after being confirmed by the buyer, the EFP report is required to be subject to the member’s risk control examination and then the Exchange’s examination. When the Exchange’s trading system processes margin and positions with respect to the EFP transaction, the trading of the futures contract has been closed, after which CFFEX’s trading system cannot process the EFP report. In such case, the EFP transaction fails.
The client may take appropriate actions to address it or resubmit the EFP report before 10:15 a.m. on the following trading day.