27. How to limit the position of cotton futures in the month before the delivery month?

Answer: In the month before the delivery month, the Zhengshang Institute implemented an absolute position limit on the unilateral positions of cotton futures contracts by broker members, non-broker members and investors, as well as early, mid and late positions. The specific regulations are as follows:

The largest unilateral position (hand) one month before the variety delivery month

Broker member non-broker member investor

Cotton early mid-late mid-late mid-late mid-late mid-late

8000 4000 2000 4000 2000 1000 2000 1000 500

28. How to limit the position of cotton futures in delivery month?

Answer: In the delivery month, Zhengshang implements an absolute position limit on cotton futures unilateral positions by broker members, non-broker members and investors. The specific rules are as follows:

The largest unilateral position (hand) in the delivery month

Broker member non-broker member investor

Cotton 1000 300 100

Twenty-nine, how much should the member or client hold the position to report to the exchange?

Answer: When the position of the member or investor’s cotton contract reaches more than 80% of the speculative position limit specified by the exchange (including the number), the member or investor should report their capital and position to the exchange. The investor must pass Broker member report. The exchange can change the level of position reporting according to market risk conditions.

30. Under what circumstances does the transaction ownership force a liquidation?

Answer: When one of the following situations occurs to members or investors, the transaction ownership will force the liquidation of their positions:

(1) The balance of the settlement reserve is less than zero and fails to make up within the prescribed time;

(2) The holding position exceeds the limit of its position;

(3) Those who have been forced by the Exchange to close their positions due to violations of regulations;

(4) When there are three consecutive ups and downs, the Exchange may choose to force liquidation;

(5) Forcibly close the position according to the emergency measures of the Exchange;

(6) Others should be forced to close the position.

31. Which departments should I consult with if I have any questions about cotton futures trading?

A: In the process of cotton futures trading, investors can consult the following relevant departments depending on the content of the problem. Now the work responsibilities of the relevant departments are briefly introduced as follows:

(1) Market Development Department 3: Responsible for cotton market development research, publicity and training, transaction organization, risk control, market information collection and feedback, and communication and exchange between Zhengshang and its members.

(2) Trading Department: responsible for the management of daily operations of futures trading; timely analysis and monitoring of futures trading risks; collection, collation, analysis, and prediction of relevant trading information; revision and improvement of various risk control management methods; management of market representatives , Training; management of the trading floor and distribution of member documents and information; review, approval and management of hedging data.

(3) Delivery Department: the management of designated delivery warehouses and the training of relevant personnel, the investigation and demonstration of the designated delivery warehouses; the investigation and analysis of the basic conditions of the storage and transportation of listed varieties and reserve listed varieties; the release of delivery information; the forecast of delivery storage 1. Supervision and management of spot checks of goods, registration, cancellation, and delivery of warehouse receipts; warehouse receipt transactions, purchases, and auctions; daily operations of warehouse receipt computer management systems; management of futures-to-spot operations; daily work of the Council’s Delivery Committee; Zheng Shang Internal work coordination and other related work.

(4) Audit Department: handle matters related to corporate legal person membership, membership change, qualification transfer, seat determination, etc.; manage and supervise the declaration and use of customer codes of member units; accept and review the declaration materials for the establishment of remote transaction systems by member units Assist law enforcement agencies to perform official duties and handle related affairs; coordinate and coordinate major lawsuits of Zhengshang; accept complaints between investors and members; and supervise and inspect the business operations, risk control, and operating conditions of member units according to law; Entrusted to supervise the implementation of the budget report of Zhengshang; the daily work of the Council Membership Review Committee, Supervision Committee, and Mediation Committee.

(5) Settlement Department: Control settlement risks, statistically register and report transactions, settle settlements; revise and improve the settlement system, improve settlement methods; handle capital transactions, register and prepare member settlement accounts; handle member transactions Account disputes and management of risk reserves according to regulations; warehouse receipt delivery, transfer, mortgage, frozen business; monthly delivery delivery monitoring; statistics, preparation of relevant delivery business information; handling tax payment procedures and tax policy coordination related to delivery business, Handle warehouse rent and other related business; management of pledge transaction margin business of rights certificate; internal cooperation of Zhengshang and other related work.