New trading mechanism for SHFE necessary and imminent

摘要

Industrial insiders said it is a necessary and imminent task for the Shanghai Futures Exchange (SHFE) to improve its trading mechanism and establish a 24-hour trading system for all its futures products. In recent trading days, the LME base metal futures prices have fluctuated widely, which has caused daily limit-up or down with extremely thin trade volume on the SHFE copper and aluminum. As a result, the traders on the SHFE have faced large risk as they can not cover their positions promptly. Furthermore, the very light trading has affected the pricing function of the SHFE.