Futures exchanges will operate during holidays
Updated: 2012-08-30 18:55
(chinadaily.com.cn)
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China's futures markets will be allowed to operate during holiday breaks as regulators are looking to solve problems arising from the forced closure of the markets, the Shanghai Securities News reported on Thursday.
Futures exchanges will be allowed to operate during the Mid Autumn Festival and National Day this year, the report said. In the past, future exchanges often paused during holidays lasting more than five days.
China's three major futures exchanges — which are based in Shanghai and Shenzhen — raise margins before long holiday breaks to control risks. The breaks may cause significant losses to investors when trading orders cannot be processed after significant price fluctuations.
Allowing futures exchanges to operate during the holidays will help China's domestic futures markets integrate into the global futures market, the report said.
Pilot schemes for trading during the night are also undergoing research. Gold futures may become the first asset to trade at night, the report said.
Meanwhile, domestic trading during the holidays requires solving several technical problems, such as risk management and settlements, which call for the cooperation from other institutions, such as banks, according to the report.
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