Date：December 16, 2014
Source: China Securities Journal

Shanghai Futures Exchange (SHFE) launched after-hours trading from the night of December 26 for steel rebar, hot-rolled coil, natural rubber and bitumen. What is the significance of launching after-hours trading for these 4 products? What factors are considered for trading rules development? Is there any difference in regulation? Related responsible person from SHFE answered the reporter of the China Securities Journal (CSJ) on these questions.
CSJ: What is the significance of launching after-hours trading for steel rebar, hot-rolled coil, natural rubber and bitumen?
SHFE: We launched after-hours trading for steel rebar, hot-rolled coil, natural rubber and bitumen on the basis of the successful pilot of precious metal and non-ferrous metal mainly because: first, it could enhance the futures market’s ability in serving the real economy; second, promote China’s futures market to open to the global market; third, enhance the global influence of China’s futures’ prices; fourth, help investors to defend risks for their over-night positions.
CSJ: We have noticed that the after-hours session for steel rebar, hot-rolled coil and bitumen is from 21:00 to 1:00, yet natural rubber is from 21:00 to 23:00, why is the difference?
SHFE: This decision is based on our comprehensive consideration of product characteristics, trading sessions in related markets and trading habits of investors, especially industrial clients. Therefore, we set after-hours session for steel rebar, hot-rolled coil and bitumen from 21:00 to 1:00, Monday to Friday, which basically covers the active session in global market; we set after-hours session for natural rubber from 21:00 to 23:00, Monday to Friday, which is close to the trading hours of surrounding markets.
CSJ: If there is any breakdown during after-hours session, how to handle it?
SHFE: If there is any breakdown that interrupts normal operation during after-hours session, SHFE will handle this emergency in accordance with Article 100 in “SHFE Trading Rules”, Article 14 in “SHFE Detailed Trading Rules”, Article 7 in “SHFE Detailed Rules for After-hours Trading” and relevant regulations in “SHFE Contingency Plan for Market Emergencies”.
CSJ: With an increasing number of trading products, what are the differences between current emergency procedures and former ones?
SHFE: Given the different closing times of the products in after-hours trading, if the after-hours trading can not be operated normally and when the delayed opening time of certain product announced by the Exchange is consistent with the closing time of its after-hours trading, the after-hours trading of this product will be suspended on that day and the call auction will be postponed to the daytime of the next day. For instance, the natural rubber’s closing time for the after-hours trading is 23:00, and its trading will be suspended on that day if the opening time of the after-hours trading is postponed to 23:00, and its call auction will also be postponed to the daytime of the next day. This measure mainly considers investors’ expectation on trading hours and their trading preparations.
CSJ: How to deposit during after-hours session? Could members withdraw money from their account during this session?
SHFE: Futures company members could deposit during after-hours session through the futures capital management system, but they could not withdraw money during this session. Clients could deposit their money through the bank-futures transfer system. In the meantime, clients could also deposit through online banking.
CSJ: What are the differences between regulations in after-hours session and normal trading session for members or clients?
SHFE: According to “SHFE Management Measures on Risk Control” and “SHFE Measures on Violations”, the regulatory measures for members or clients will remain the same during the after-hours session. Clients, especially industrial clients, who trade in after-hours session for the first time, should have a full understanding of the trading rules and be aware of the risks during this session. Futures companies are required to do a good job in reminding investors of risks.