The China Financial Futures Exchange ("CFFEX") has recently issued the Administrative Measures for Risk Control (Revised Draft for Comment) (the "Draft for Comment"), the Detailed Rules for Delivery of Treasury Bond Futures Contracts (Revised Draft for Comment), the Two-year Treasury Bond Futures Contract (Draft for Comment) and the Trading Rules for Two-year Treasury Bond Futures Contracts (Draft for Comment) to seek public opinions by July 24, 2018.
The Draft for Comment provides that, the amount of declared close positions refers to all positions that have been declared at the daily maximum or minimum price in the exchange's system but not been concluded yet, when the market has been closed on the second trading day, and where the clients' loss of each net position unit of the contracts equals to or exceeds a certain proportion (10% for stock index futures, 0.5% for two-year treasury bond futures, 1.2% for five-year treasury bond futures and 2% for ten-year treasury bond futures) of the settlement price on the second trading day. The Draft for Comment also updates the principle of volume allocation of close positions.