Com­modi­ties mar­ket 10% fluc­tu­a­tion limit starts June

The China Post - - LOCAL -

The com­modi­ties mar­ket will widen the daily fluc­tu­a­tion limit to 10 per­cent on June 1, in­clud­ing the stock in­dex, stock class (in­clud­ing do­mes­tic stocks ETF), com­modi­ties and op­tions, in con­junc­tion with the stock fluc­tu­a­tion limit changes made re­cently. The pack­age will be ad­van­ta­geous in re­flect­ing mar­ket statis­tics, im­prove mar­ket ef­fi­ciency and in­crease Tai­wan’s com­modi­ties mar­ket’s com­pet­i­tive­ness on an in­ter­na­tional level.

Stock fu­tures and op­tions (ex­clud­ing un­der­ly­ing se­cu­ri­ties for ETF) mar­gins rate range will in­crease to three ranges. The third range’s clear­ing mar­gin, main­te­nance mar­gin, and ini­tial mar­gin rates will be­come 15 per­cent, 15.53 per­cent and 20.25 per­cent re­spec­tively. Other prod­ucts’ mar­gin cal­cu­la­tions re­main the same. Traders should be mind­ful of risk man­age­ment and avoid mar­gin calls or re­ver­sal stan­dards con­ver­sion. Mar­ket or­ders’ turnover range will also in­crease.

The Tai­wan Fu­tures Ex­change (TAIFEX) will be hold­ing con­fer­ences to ex­plain the reg­u­la­tions and mea­sures re­gard­ing the com­mod­ity fluc­tu­a­tion limit changes in mid-April. The TAIFEX web­site ( tw) will also pro­vide a sec­tion for traders to look up the new daily com­modi­ties fluc­tu­a­tion limit.

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