March 19, 2020 / 9:32 AM / 5 months ago

FACTBOX-China commodity exchanges act to contain virus-driven volatility

(Adds new styrene trading margin, limit announced on Thursday)

BEIJING, March 19 (Reuters) - China’s commodity exchanges have rolled out a series of measures - from raising margin requirements and trading limits to halting trade completely - to help maintain market stability as coronavirus panic spreads across the globe.

Below is a list of some of the actions taken, affecting trade in everything from eggs to gold in the world’s biggest commodities consumer. CRUDE OIL/RUBBER * The Shanghai International Energy Exchange (INE), responding to a collapse in global oil prices, raised the trading margin on its crude oil futures contract to 11% from settlement on March 11, and hiked the trading limit to 10% from March 12. * On Tuesday, the INE said it would waive delivery fees for its crude oil and TSR 20 rubber futures from April 10 this year until Jan. 8, 2021 to ease financial pressure on market participants.

SHFE * The Shanghai Futures Exchange (ShFE) increased trading margins and limits on a large number of commodity futures contracts starting this week, including base metals, steel rebar, hot-rolled steel coil and fuel oil. * On Tuesday, the bourse said it would also waive delivery fees for 16 products - including base metals, steel, gold, silver and fuel oil - from April 10 until Jan. 8, 2021 PRECIOUS METALS * The Shanghai Gold Exchange (SGE) on Monday said it would raise margin requirements and trading limits for gold and silver contracts after big price fluctuations. * On Tuesday, the bourse said it would impose a one-day halt on trading in its Ag (T+D) silver contract on March 18, after the contract fell 13%, and would take measures to reduce market risk. * Silver trading on the SGE resumed on Thursday with the margin requirement raised to 19% from 14% and the trading limit increased to 18% from 13%, but the exchange said after the market closed the margin and limit would be lowered to 16% and 15%, respectively. DCE * The Dalian Commodity Exchange (DCE) said on March 4 it would raise trading limits and margins on its egg futures contracts for May and June delivery. * It then raised transaction fees for the April and May egg contracts. (bit.ly/2QnykWT) * The DCE said on Thursday it would raise the trading limit for styrene futures to 9% and margins to 11% from settlement on Mar.19.

Reporting by Min Zhang, Tom Daly, Emily Chow and Muyu Xu; editing by Jason Neely and Raju Gopalakrishnan

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