The modified version of fuel oil futures specification of the Shanghai Futures Exchange has been approved by the government.
The China Securities Regulatory Commission agreed the implementation of Fuel Oil Specification Contact of Shanghai Futures Exchange, according to an announcement posted on the website of CSRC.
According to the specification contract, the minimum trading volume and unit was both 50mt, versus 100mt in the previous version; and, the trading margin ratio should be not lower than 8%.
However, SHFE raised the minimum trading margin ratio to 10% on Nov 29, 2010, and it would continue to collect 10% of trading margin or set higher ratio in the future, according to a source with the bourse.
New specification was close to 180CST bunker fuel oil or the GB-17411-1998 but added metal parameters, said a source with SinoBunker.
Fuel oil blending costs would rise, because acid value and metal parameters were required, denoted a South China-based spot trader.
The revised specification contract would take effect from the start of trading of new contracts, the CSRC said in the announcement. It meant the specification contract would not become effective until February 2012 at the earliest, said a futures broker.
The China Securities Regulatory Commission agreed the implementation of Fuel Oil Specification Contact of Shanghai Futures Exchange, according to an announcement posted on the website of CSRC.
According to the specification contract, the minimum trading volume and unit was both 50mt, versus 100mt in the previous version; and, the trading margin ratio should be not lower than 8%.
However, SHFE raised the minimum trading margin ratio to 10% on Nov 29, 2010, and it would continue to collect 10% of trading margin or set higher ratio in the future, according to a source with the bourse.
New specification was close to 180CST bunker fuel oil or the GB-17411-1998 but added metal parameters, said a source with SinoBunker.
Fuel oil blending costs would rise, because acid value and metal parameters were required, denoted a South China-based spot trader.
The revised specification contract would take effect from the start of trading of new contracts, the CSRC said in the announcement. It meant the specification contract would not become effective until February 2012 at the earliest, said a futures broker.
