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The simulated trading is aimed mainly at educating market participants, according to a statement released by the exchange late on Thursday March 6.
The listing benchmark for simulation was set at 3,360 yuan ($548) per tonne with a daily trading limit of 8% of the price on the first day. This is double the tentative 4% limit during the simulation period, according to the SHFE.
The exchange will also be offering training for companies on the HRC futures contract from March 11 till April 1 in Shanghai, Guangzhou, Beijing, Shenyang and Wuhan.
“I think the simulation trading will be helpful to some beginners to familiarise themselves with the rules and trading procedures. The formal launch of the contract could be very soon if everything goes well,” a source with a Tianjin-based futures company said.
At an industry meeting held in Shanghai in late February, an SHFE official told delegates that the contract was still being prepared.
Although he did not disclose the exact date for its launch, industry insiders generally expect it to be as early as the end of this month.
The Shanghai Futures Exchange began a trial run of its hot rolled coil futures on Friday March 7 to ensure a smooth launch of the contract.