On March 20, the Shanghai Futures Exchange (SHFE) issued the following announcement regarding the participation of overseas traders in nickel futures and options:
With approval from the China Securities Regulatory Commission, nickel futures and options on the Shanghai Futures Exchange have been designated as domestic specific products. The details concerning overseas participants trading the above products are hereby announced as follows:
I. Implementation Date
Trading will commence on April 22, 2026 (starting from the continuous trading session on the evening of April 21). The collective bidding period will run from 20:55 to 21:00 on April 21, with the market opening at 21:00.
II. Contracts
The NI2605 contract and subsequent futures contracts, as well as options contracts based on the above futures contracts.
III. Foreign Currency Usage as Margin
Overseas special non-brokerage participants and overseas clients may use foreign currency as margin. The central parity rate announced by the China Foreign Exchange Trade System on the day of valuation will serve as the benchmark for determining the market value of such foreign currency. Currently, SHFE allows U.S. dollars as the acceptable foreign currency for margin, with a discount rate of 0.95.
The market value of foreign currency used as margin before market close on the day will be initially calculated based on the central parity rate announced by the China Foreign Exchange Trade System on the previous trading day. The benchmark rate for the foreign currency used as margin will be recalculated at each daily settlement using the methodology described above, with adjustments made to the discounted amount accordingly.
From the date of this announcement, account-opening institutions shall comply with SHFE's relevant requirements, including the Notice on the Management of Trading Access for Nickel Futures and Options Contracts, to ensure adequate risk disclosure to domestic and overseas participants, strictly fulfill their obligations for investor suitability management, and comprehensively assess the risk tolerance of participants before completing account opening procedures.
Written by Cora Ji, jiruyan@mysteel.com
