The proposed financial derivatives exchange in Shanghai is planning to release a regulatory framework for the trading of stock index futures contracts by the end of this month.

Trading is scheduled to begin at the end of this year, several months later than earlier expected.

The market will trade financial contracts that obligate the buyer to purchase financial instruments at a specified future date at a pre-set price.

Details to be released mainly concern regulations on broking services and clearing methods, according to the official securities paper, China Securities News, yesterday.

But it is not clear whether other details, including contract size and maturity, tick values, margin levels and the price movement limit, will be released at the same time.

Contracts are likely to be based on the existing Shanghai & Shenzhen 300 Index, which covers about 60 per cent of the market value in the Shanghai and Shenzhen markets, said China Securities News, quoting unnamed officials.

Officials confirmed earlier reports that futures brokerage companies are to take over the majority of the broking business for stock index futures contracts.

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