DCE: Notice on Listing and Trading of Log Futures | by MARKET BRIDGE CONSULTING | Nov, 2024 | Medium The China Securities Regulatory Commission (CSRC) has officially approved the registration of Log futures on Dalian Commodity Exchange (DCE) . The relevant matters on listing and trading are hereby released: I. Listing and Trading Time The Log futures contracts will be listed and traded on November 18 (Monday), 2024. The trading sessions are 9:00–11:30 a.m., 1:30–3:00 p.m., Beijing Time, and other trading hours announced by DCE. There will be no night trading session for Log futures. Log Futures Contract of Dalian Commodity Exchange (“DCE”) II. Listed and Traded Contracts The first batch of listed and traded contracts includes LG2507,LG2509 and LG2511. In accordance with the Trading Rules of Dalian Commodity Exchange and other rules, the listing benchmark prices of Log futures contracts are released as follows: LG Contract 2507 810 CNY / Cubic Meter LG Contract 2509 810 CNY / Cubic Meter LG Contract 2511 810 CNY / Cubic Meter III. Trading Margin and Price Limit The price limits of Log futures shall be 6% of the settlement price of the last trading day. On the first trading day, the price limits of Log futures shall be 12% of the listing benchmark prices. The trading margins of Log futures shall be 8% of the contract value. Other provisions shall be subject to the Measures for Risk Management of Dalian Commodity Exchange. IV.Trading Commission The trading commission is 0.01% of the amount of the concluded contracts. The hedging trading commission is 0.005% of the amount of the concluded contracts. V. Order Fees The order fees shall be collected on daily basis. The standards are as follows: Table: The order fees standards of Log futures The order fees are calculated on the basis of Log futures contracts. Contract order fee = ∑(each message amount of contract by clients or Non-Futures Company Members on the then-current day × each charging rate) Message amount = number of order placements + number of order cancellations OTR= message amount / number of executed orders-1 As for the same client who has several trading codes with different Futures Company Members, or clients and Non-Futures Company Members involving actual control relationship, DCE will calculate their number of order placements, number of order cancellations and number of executed orders on a consolidated basis. VI. Portfolio Margin There will be trading margin discount for the portfolio positions on Log futures. VII. Position Information Disclosure DCE will release the trading volumes and open interests of Log futures contracts after the settlement on each trading day. The listing benchmark prices of the new contracts, the delivery areas, premiums / discounts of different regions, designated quality inspection agencies, designated delivery warehouses and designated FOT delivery sites will be notified before the listing of Log futures by DCE. Compare to CME Lumber
The lumber futures from CME is around zero. I presume you wanted to trade lumber futures from DCE. I think you might be the only one in the whole world trading it. So you need 2 trading accounts; one to BUY and the other to SELL.
DCE will also list Log options on November 19 (Tuesday), 2024 DCE: Notice on Listing and Trading of Log Options | by MARKET BRIDGE CONSULTING | Nov, 2024 | Medium The China Securities Regulatory Commission (CSRC) has officially approved the registration of Log options on Dalian Commodity Exchange (DCE). The relevant matters on listing and trading are hereby released: I. Listing and Trading Time Log options will be listed for trading on November 19 (Tuesday), 2024. On the listing day, the call auction will be from 8:55 to 9:00, and the opening time will be at 9:00. Log options are not available for night trading temporarily. Log Options Contract of Dalian Commodity Exchange II. Contracts Listed for Trading Log options listed for trading are LG2507, LG2509, LG2511. III. Listing Prices The listing prices of Log options contracts are calculated based on the BAW American futures options pricing model. The interest rate in the model is the latest benchmark one-year deposit rate, and the volatility is based on factors such as the historical volatility of the physicals prices comprehensively. The listing prices will be released together with the settlement data through the Member Service System after the settlement on the trading day prior to the listing day, and will also be released on DCE’s website (www.dce.com.cn). IV. Trading Orders Limit order and stop limit order will be offered. The maximum quantity of orders placed each time of the options contract is the same as that of the underlying futures contract, 1000 lots. V. Exercise and Fulfillment During the trading hours of any trading day and from 15:00 to 15:30 on the expiration day, clients may submit application for exercise, hedging liquidation of the two-way options positions, hedging liquidation of the two-way futures positions following exercise or fulfillment. During the trading hours and from 15:00 to 15:30 on the expiration day, clients may submit application for cancelling automatic exercise of options. VI. Position Limits The position limit for Log options is 1500 lots. The position limits of Log options and Log futures are separate. With respect to the options contracts of a particular month held by the Non-Futures Company Member and the client, neither the sum of the buying open interest of all call options and the selling open interest of all put options, nor the sum of buying open interest of all put options and the selling open interest of all call options may exceed the position limit of the corresponding options contracts. The positions involving actual control relationship shall be calculated on a consolidated basis. VII. Portfolio Margin From the settlement on November 19, 2024, LG2507 options contracts will be the contracts applicable to portfolio positions. VIII. Related Commissions The trading commissions of Log options is 1 CNY/lot. The exercise (fulfillment) commissions of Log options are the same as the corresponding trading commissions. The hedging commissions of Log options is 0.5 CNY/lot. The order fees shall be collected on Log options.The order fees shall be collected on daily basis. The standards are as follows: Table: The order fees standards of Log options The order fees are calculated on the basis of Log futures contracts. Contract order fee = ∑(each message amount of contract by clients or Non-Futures Company Members on the then-current day × each charging rate) Message amount = number of order placements + number of order cancellations OTR= message amount / number of executed orders-1 As for the same client who has several trading codes with different Futures Company Members, or clients and Non-Futures Company Members involving actual control relationship, DCE will calculate their number of order placements, number of order cancellations and number of executed orders on a consolidated basis. IX. Market Maker Mechanism and Quotation Inquiry The market maker mechanism is implemented in the trading of Log options. Non-Futures Company Members or clients may submit a quotation inquiry to the market makers on non-continuous-quotation contracts. The continuous-quotation contracts will be released on DCE’s website. The quotation inquiry shall specify the contract symbol of the options. The interval between two quotation inquiries on the same options contract should not be less than 60 seconds. The maximum number of quotation inquiries on each options product under the same trading code is 200 per day.
MM are smart people. They don't quote a dead product. You can apply as an MM. DCE will be more than happy to accept you.
This is good info. I'm planning to build a log cabin next summer, and I'd like to lock in prices now. Guy at my local lumberyard said there was no way to do that.
I heard DCE paid nicely for market makers and most market makers for exchanges in China are just brokerage firms.
Not if your not Chinese ZERO ZERO chance have traded here since 2012 and there is no way your MM as non Chinese.