The Shanghai Futures Exchange (SFE), one of China's major
futures trading agencies, said on Thursday that it has completed
basic preparations for gold futures trading and will launch the new
service as soon as possible.
The SFE had "designed strict regulations on the risk control
measures for gold futures", said Teng Jiawei, vice executive
president of the SFE.
The measures included a minimum margin requirement of seven
percent of the value of gold futures contracts.
"Due to big fluctuations in gold prices, we set a relatively
high level of the margin requirement," said Teng.
The daily fluctuation of gold futures prices should not exceed
plus or minus five percent of the settlement prices of a previous
day, he said.
The exchange was soliciting public suggestions on gold futures
contracts and regulations, which would be considered when setting
the final regulations, said Teng.
Gold prices have fluctuated strongly, prompting gold producers,
financial institutions and investors to avert risks through futures
trading, the SFE said.
Last year, China produced a record 240 tons of gold, a growth of
7.15 percent year-on-year. In the first five months this year, the
country produced 98.89 tons of gold, up 10.09 tons or 11.37 percent
from the same period last year, according to the China Gold
Association
(Xinhua News Agency September 14, 2007)
