FAQ
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Will trading positions of multiple trading accounts that are owned separately by related entities under same business group be combined together in the risk management or managed separately?
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Positions held by clients, non-FF members, or OSNBPs that have actual control relationship with each other shall be calculated in aggregation in accordance with applicable risk management rules. The open positions held in aggregate by a client through multiple trading codes with different FF members, OSBPs or overseas intermediaries shall not exceed the position limit set by the Exchange. The Exchange calculates each trader’s position in a gross base method, i.e. long and short positions of different contracts will be summed up individually and does not manage net positions. For accounts with actual control relationship, non-FF members, or OSNBPs shall declare to the Exchange while clients shall declare to China Futures Monitoring Center (CFMMC). The Exchange obtains the information of the accounts with actual control relationship through CFMMC according to the applicable rules, and combines the positions of these accounts held by a client through multiple trading codes in risk management.
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Could the arbitrage positions and speculative positions of client exceed the speculative position limit prescribed by the Exchange? How to apply for increase in the arbitrage position limit.
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The total of the arbitrage positions and speculative positions of Non-Futures Company Members and clients shall not exceed the speculative position limit prescribed by the Exchange. Non-Futures Company Members and clients may apply for increase in the arbitrage position limit. Clients having obtained the hedge trading qualifications shall not apply for arbitrage position limit increase of the same products.
Clients shall apply to increase its arbitrage position limit through their Futures Company Members. The Futures Company Member shall file an application with the Exchange for the client after verifying the client's application materials. Where a client who entrusts an overseas broker with futures trading matters intends to apply for arbitrage position quota, it shall entrust its overseas broker with its application, and the overseas broker shall then entrust a Futures Company Member to submit the application.
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