Shanghai to adjust trading margin of some crude oil futures

Shanghai to adjust trading margin of some crude oil futures

Shanghai Adjusts Trading Margins and Price Limits for Crude Oil Futures

The Shanghai International Energy Exchange (INE) has announced adjustments to the trading margins and price limits for specific crude oil futures contracts, effective February 5, 2026. The changes apply to Crude Oil, Low Sulfur Fuel Oil, and TSR 20 futures contracts, reflecting the exchange's ongoing efforts to manage market risks amid evolving trading conditions.

Under the revised parameters, the price limits for these contracts will be set at ±9% of the previous trading day's settlement price. For hedging positions, the required trading margin rate has been adjusted to 10% of the contract value, while general positions now carry a margin requirement of 11% of the contract value. These adjustments aim to balance liquidity with risk mitigation, ensuring market stability without unduly restricting participation.

The INE emphasized that further modifications may occur if specific risk management criteria outlined in Article 16 of its Risk Management Rules are triggered. Such provisions allow the exchange to respond dynamically to market volatility or other unforeseen circumstances. Traders and investors are advised to review the updated rules and monitor notifications for potential changes.

The circular underscores the importance of adhering to the Chinese version of the notice in case of discrepancies between translations. While the adjustments primarily target crude oil-related contracts, market participants should remain vigilant about broader implications for energy trading strategies and capital allocation.

This move aligns with the INE's broader mandate to maintain orderly market operations and protect stakeholder interests. As global energy markets continue to navigate geopolitical and economic uncertainties, regulatory adaptations like these highlight the exchange's proactive approach to risk governance.

(https://www.shfe.com.cn/eng/CircularNews/Circular/202602/t20260203_830350.html): Shanghai International Energy Exchange, February 3, 2026.

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