China’s Shanghai energy exchange to allow use of govt bonds as margins
China’s Shanghai International Energy Exchange (INE) is set to revise its settlement and delivery rules to enable the usage of government bonds as margins used in trade, it said on Monday, seeking public opinion on the revisions.
The exchange did not say when the revisions would be effective, but specified that the government bonds used as margins should have a total face value of at least one million yuan ($154,748), it said in a statement released on its website.
Margins are deposits paid by investors in futures markets to an exchange or clearing house to cover the risk of default by that investor.