The China Financial Futures Exchange (CFFEX) said on March 31 that the stock index futures and bond futures markets have been basically smooth and in order for the recent period of time, but they see some sharp fluctuations for various reasons. To promote the smooth operation of the market, the CFFEX will further improve the trading mechanism. Firstly, it will scrap directives on the revocation of remaining buying orders in real-time trading and on the cancellation of remaining buying orders in real-time trading. Secondly, it will cut the maximum transactions made by the stock index futures price-limit order and market order from 100 and 50 lots to 20 and 10 lots, respectively. Thirdly, it will cut the maximum transactions made by the treasury bond futures price-limit order and market order from 200 and 50 lots to 50 and 30 lots, respectively.
The adjustment of the trading mechanism is designed to reduce the frequency of large sudden swings caused by large orders in the trading of nonactive contracts. The CFFEX will continue to track and monitor the market conditions, constantly improve the trading mechanism, continue to improve market liquidity and bring the futures market to better play while effectively prevent risks and maintaining a smooth operation.
Translated by Coral Zhong