The China Financial Futures Exchange ("CFFEX") has recently released a series of updated policies, including the Five-year Government Bond Futures Contract, the Ten-year Government Bond Futures Contract, the Trading Rules for Five-year Government Bond Futures, the Trading Rules for Ten-year Government Bond Futures and the Administrative Measures for Hedging and Arbitrage Transactions, all of which have come into force as of February 13, 2018.
Amendments introduced this time optimize the system in respect of position limits for government bond futures and exclude outdated bonds of relatively long terms from the range of deliverable government bonds for government bond futures. In particular, amendments to the position limits have taken effect from February 13, 2018 to the government bond futures contract No. 1806 and the subsequent contracts, and those concerning the exclusion of outdated bonds will apply to the contract No. 1812 for newly launched government bond futures and the subsequent contracts. Furthermore, the amendments reduce the number of brackets for position limits and security deposits, adjusting the previous three brackets for position limits and security deposits to two brackets that apply to the general months and the month closing to the delivery, and cutting the brackets for security deposits from three to two; additionally, the position limits are adjusted, and the deadline for applying for the quota for hedging and arbitrage transactions in the month closing to the delivery, as well as the effective date, are both postponed.