CHINA: DCE Publishes Notice on Starting Simulation Trading of RBD Palm Olein Options

Tuesday June 1 2021

On 28^th May 2021, Dalian Commodity Exchange (DCE) announced that it will launch simulation trading for the RBD palm olein options on 1^st June 2021. All members are required to effectively make technical and operational preparations and organize clients to participate, so as to ensure the smooth operation of RBD palm olein options simulation trading. Relevant matters are hereby announced as follows: 

Participation 

The clients who obtained simulation trading codes in DCE can participate in the trading directly. Otherwise, clients can apply for simulation trading codes through the members. 

Listed Contracts 

The first batch of listed contracts includes the RBD Palm Olein Options contracts with P2109, P2110, P2111, P2112, P2201, P2202, P2203, P2204, P2205 as the underlying futures contracts. 

Trading Order 

DCE will offer the limit order and the stop limit order, and the maximum bid/offer quantity of each trading order of the option contract shall be the same as that for the underlying futures contract. 

Trading Hours 

The trading hours for simulation trading are 9:00-11:30 and 13:30-15:00 from Monday to Friday. There is no night session trading. 

Listing Benchmark Prices 

The listing benchmark prices of the newly-listed options contracts based on the BAW American futures options pricing model. The interest rate in the model is the one-year time deposit benchmark interest rate and the volatility is the 90-day historical volatility of the underlying futures contract. 

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