China's Dalian Commodity Exchange will adjust up the margin size for coke and coking coal futures by 12% of the contract value effective August 21 (Tuesday), in a move to curb speculation amid soaring prices, said the exchange in an announcement on August 18.
The previous margin, or the amount of money traders must put up to take a position on the exchange, remained at 11% since April, the most recent adjustment of margin size of these two futures.
The exchange will also limit the size of positions taken in some iron ore contracts by non-breakage members and clients. The daily sum of purchases and sales of one kind of contracts delivered in January and May should not surpass 6,000 lots. Each lot is 100 tonnes of ore. The adjustment takes effect at the night trading time of August 21.
Hedging transactions will not be affected by the move.
The adjustments are the second for DCE to regulate coke and coking coal futures within less a month in the wake of adjustment of benchmark trading service charge on July 27, which decreased to 0.18 in 1,000 from 0.36 for contracts delivered in January, May and September, effective August 1.
(Writing by Alex Guo Editing by Harry Huo)
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