MEG futures contract rules and brief on operation condition
——Chen Xuanchen, Senior Manager of Business Department of Dalian Commodity Exchange

Chen Xuanchen, Senior Manager of Business Department of Dalian Commodity Exchange, made his report on MEG futures contract rules and brief on operation condition 

 

Mr. Chen first introduced MEG futures contract and rules. MEG futures delivery quality standard is based on polyester-grade products under national standard, adding 1,2-BDO and ethylene carbonate indicator. The delivery regions are East and South China—with highly concentration of import and consumption. Among 14 delivery warehouses, there are 13 storage warehouses and 1 factory warehouse. Limit up/down range is 5% for months before delivery month, and 6% for delivery month. Trading margin of general month is 6% of the contract value. Mr. Chen also introduces other terms of MEG futures contract, MEG futures delivery system, warehouse receipt delivery process, etc. 

Then, Mr. Chen introduces the MEG futures operation condition, including turnover and open interest, futures/spot price trend and basis condition, and customer participating condition. 

At last, Mr. Chen summarizes the work plan. The DCE plans to closely monitor EG1906 operation, and guarantee first delivery to be smooth, set up delivery warehouse and inspection institution, and steadily push forward landing and implementation of bonded delivery.