Cffex raises position reduction threshold ahead of imminent China futures launch

Shanghai-based China Financial Futures Exchange (Cffex), China's first and only financial futures exchange - which looks set to trade its first index futures contracts in April - has raised the limit on forced position reduction to a 20% increase or fall of the contract price, from 16%. Forced position reduction is one risk management tool adopted by the exchange to reduce market risks. Cffex said it would only use forced position reduction when there are only buy orders or only sell orders