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9 Sep 2015
China kills CSI 300 volumes, down 99% from June peak
FXStreet (Bali) - Volumes in the China's CSI 300 - country's largest companies - , and CSI 500 indexes, not long ago the world’s largest stock-index futures market, fell to record lows on Tuesday, Bloomberg reports, with volumes down 99% from its peak in June.
As Bloomberg notes: "Liquidity in China has dried up as authorities raised margin requirements, tightened position limits and started a police probe into bearish wagers."
Among the harshest new rules introduced by the China Financial Futures Exchange, as Bloomberg elaborates, includes the definition of 'abnormal trading' to positions over 10 contracts on a single index future vs 600 contracts prior to changes in regulation. Fees for settling positions have also been raised to 0.23% from 0.0115%, while margin requirements on futures contracts are now 40% from 30%.
As Bloomberg notes: "Liquidity in China has dried up as authorities raised margin requirements, tightened position limits and started a police probe into bearish wagers."
Among the harshest new rules introduced by the China Financial Futures Exchange, as Bloomberg elaborates, includes the definition of 'abnormal trading' to positions over 10 contracts on a single index future vs 600 contracts prior to changes in regulation. Fees for settling positions have also been raised to 0.23% from 0.0115%, while margin requirements on futures contracts are now 40% from 30%.