SHFE adjusts some fuel oil futures trade limits, margin ratio

SHFE adjusts some fuel oil futures trade limits, margin ratio

SHFE Adjusts Fuel Oil Futures Trade Limits and Margin Ratios

The Shanghai International Energy Exchange (INE) has implemented updated price limits and trading margin rates for select fuel oil and crude oil futures contracts, effective March 4, 2026. These adjustments reflect the exchange's ongoing efforts to manage market risks and ensure stable trading conditions.

Under the new parameters, Crude Oil futures contracts (e.g., sc2607, sc2712, sc2903) and Low Sulfur Fuel Oil futures contracts (e.g., lu2604, lu2703) now have price limits set at ±12% of the previous trading day's settlement price. Hedging positions for these contracts require a 13% margin rate, while general positions carry a 14% margin rateaccording to the circular. This marks an increase from earlier adjustments announced on February 3, 2026, when similar contracts had price limits of ±9% and margin rates of 10–11% as previously reported.

The changes apply to contracts with expiration months spanning 2026 through 2029, including key series such as sc2703, sc2806, lu2612, and lu2701. The INE emphasized that further adjustments may occur if market conditions trigger provisions outlined in Article 16 of its Risk Management Rules, which address extreme volatility or systemic risks.

For newly listed contracts, such as SC2903 and LU2703, the exchange previously set price limits at ±9% and margin rates at 10–11% according to earlier circulars. However, the March 4 revisions supersede these earlier parameters for overlapping contracts.

Traders and investors are advised to review the INE's Risk Management Rules for additional details on margin calculations and limit exceptions. The exchange also noted that the Chinese version of its notices takes precedence in case of discrepancies with translated content.

These adjustments underscore the INE's proactive approach to balancing market liquidity with risk mitigation, particularly in energy markets sensitive to geopolitical and supply-demand dynamics.