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Notification on Market Risk Control during the Chinese New Year Holiday in 2019

Date: 2019-01-24

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All Members,

According to the holiday schedule of SGE, the market will be closed from February 4th (Monday) to February 10th (Sunday), and there will be no night trading session on February 1st (Friday). The market will open for trading on February 11th (Monday).

In order to mitigate market risk during the holiday, we will adjust the margin rates and price limits of Au(T+D), Au(T+N1), Au(T+N2), mAu(T+D) and Ag(T+D) according to the Measures for the Administration of Risk Control of the Shanghai Gold Exchange. Detailed adjustments are as below:

1.As of after-hours clearing on January 31st 2019 (Thursday), margin rates for Au(T+D), Au(T+N1), Au(T+N2) and mAu(T+D) will be raised from 6% to 9%, and their price limits will be raised from 5% to 8% starting from the following trading day. Margin rate for Ag(T+D) will be raised from 7% to 10%, and its price limit will be raised from 6% to 9% starting from the following trading day.

If a limit-locked market occurs on January 31st 2019 (Thursday), the higher level of margin rates and price limits will be adopted if the above adjustments are below the rates formulated in the Measures for the Administration of Risk Control of the Shanghai Gold Exchange.

2.After the trading resumes on February 11th (Monday), as of the first trading day without a limit-locked market, margin rates for Au(T+D), Au(T+N1), Au(T+N2) and mAu(T+D) will return to 6%, and their price limits will return to 5% starting from the following trading day. Margin rate for Ag(T+D) will return to 7% and its price limit will return to 6% starting from the following trading day.

Please properly control the market risk, duly adjust margin requirements based on your customers’ positions and risk profiles; remind your investors to keep prudent and rational during the trading, and hold appropriate position scales so as to ensure the healthy and stable operation of the market.




Shanghai Gold Exchange
January 24th 2019

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