Recently, China Financial Futures Exchange (CFFEX) officially completed the registration of 30-year China government bond (CGB) futures contracts (the “Contracts”) with the China Securities Regulatory Commission (CSRC). Today, CFFEX released the 30-year CGB futures contract specifications and relevant rules, and the Notice on the Listing and Trading of 30-Year China Government Bond Futures Contracts (the “Notice”). The first batch of three contracts will be listed for trading on April 21, 2023.
On March 17, 2023, CFFEX published the draft 30-year CGB futures contract specifications and relevant rules on its website for public consultation. During the consultation period ended March 23, 2023, CFFEX extensively solicited comments and suggestions from market participants and received general approval.
According to the Notice, the Contracts will be listed for trading on April 21, 2023. The first batch of Contracts to be listed include TL2306, TL2309, and TL2312. CFFEX will publish the listing benchmark prices, deliverable CGBs and their conversion factors prior to the listing of the Contracts. The trading margin of the Contracts shall be 3.5% of the contract value. For long and short positions held under the same client number through the same member, either in the same product or across different products of 2-year, 5-year, 10-year and 30-year CGB futures, margin is collected solely from the side for which a larger amount of trading margin is required. The limit up/limit down on the listing day shall be ±7% of each contract’s listing benchmark price. Transaction fee shall be RMB 3 per lot, and is currently exempted for closing out intraday positions. Delivery fee shall be RMB 5 per lot, and a 50% reduction shall apply until December 31, 2023. The maximum size of limit orders in the Contracts shall be 50 lots, and the maximum size of market orders shall be 30 lots.
A CFFEX official commented that preparations for the listing of 30-year CGB futures contracts are completed. Next, under the leadership of the CSRC, CFFEX will steadily proceed with the listing of 30-year CGB futures contracts to ensure a smooth product launch and stable market operations.