Futures contracts regulations expected
By Li Xiaowei (China Daily)
Updated: 2006-06-20 08:58
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.
(For more biz stories, please visit Industry Updates)
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