In 2018, crude oil futures and iron ore futures launched internationalization journey of China futures market. As exclusive futures product in the world, and the best performing chemical futures in Chinese futures market, Pure Terephthalic Acid (PTA) futures internationalization draw close attention.
In October of the same year, CZCE (Zhengzhou Commodity Exchange) promulgated Draft Rules and Regulations on the Introduction of Overseas Traders to PTA Futures Trading. In which, relevant preliminary measures and detailed rules were brought out.
PTA internationalization is on the way.
There are some main point should be known in advance.
International client type
1) Institutional client
2) Individual client
How to participate in trading for overseas clients?
Two methods approaches
1) Open trading accounts directly at the futures brokerage members of the Exchange.
2) Through the overseas brokerage agencies which entrust the Exchange’s brokerage members to open accounts for their clients.
Common participation conditions to institutional clients and individual clients
1) Pass relevant tests ------ (For institutional clients, relevant business personnel )shall have basic knowledge of the futures market, understand the Exchange’s relevant business rules for specified futures products and have passed relevant tests approved by the Exchange.
2) CNY 100,000 or equivalent amount in foreign currency ------ after daily settlement for five consecutive trading days before applying for trading codes and trading permissions, the balance in their margin accounts shall be no less than CNY 100,000 or equivalent amount in foreign currency.
3) Trading records for recent three years ------ shall have no less than one futures trading records for recent three years in any of the futures exchange within the territory of the PRC or the overseas futures trading venue, and these overseas futures trading venues shall be located in the countries or regions that have signed MOUs on regulatory cooperation with the CSRC.
4) Trading prohibited ------ shall not have severely negative credit history or be prohibited from entering the futures market by regulatory authorities; shall not be prohibited or restricted by any law, administrative regulation, rule or business rules of the Exchange from engaging in futures trading.
5) Other conditions prescribed by the Exchange.
6) Some of these Measures may be exempt for special clients recognized by the Exchange.
1) Clearing is in RMB
2) Foreign exchange funds can be pledged as margin.
3) The discount rate of Foreign exchange funds shall be determined by the Exchange (probably 5%)
FOR MORE INFORMATION, PLEASE CONTACT US: firstname.lastname@example.org
PTA Futures Contract
Pure Terephthalic Acid
5 tons per lot
(RMB) Yuan per ton
Minimum Price Fluctuation
2 Yuan per ton
Daily Price Limits
Within 4% above or below the settlement price of the previous trading day or other relevant regulations of Measures for the Administration of Risk Control of Zhengzhou Commodity Exchange
Minimum Trading Margin
6% of contract value
Recent twelve consecutive months
Monday to Friday（BJT, except national legal holidays）
and other trading hours as prescribed by the Exchange
Last Trading Day
10th trading day of the delivery month
Last Delivery Day
12th trading day of the delivery month
High class pure terephthalic acid conforming to SH/T 1612.1-2005; Stipulated by Detailed Rules for Futures Delivery of Zhengzhou Commodity Exchange
Designated delivery warehouses of ZCE
Zhengzhou Commodity Exchange