Trading error spooks China ETF options traders
Abnormally low premiums cause exchange to shut down, but market participants are unclear about the reason for the error
The start of equity option trading in China has been overshadowed by a trading mistake on options linked to Shanghai's SSE 50 exchange-traded fund (ETF), which led to a temporary shutdown on the exchange and caused market participants to call into question the liquidity of the new market.
China launched equity option trading on February 9 and two days later Citic Securities, one of the eight market-makers designated by Shanghai Stock Exchange (SSE) to provide liquidity for the new market, quoted
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