BEIJING (Commodity Online): The Shanghai Futures Exchange (SHFE) is all set to launch silver futures trading on May 10, 2012. China is one of the biggest producers and consumers of silver in the world.
This will be the second precious metals futures contract on offer by the SHFE following gold and will be aimed a proving an efficient hedging tool for producers and consumers in China.
“China’s miners, manufacturers, retailers and other enterprises, which rely on the precious metal, will undoubtedly welcome the start of domestic silver futures trading, which will allow them to hedge against fluctuating global silver prices”, the Global Times had quoted Li Ning of Shanghai Cifco Futures earlier.
The contract size is set at 15 Kg (500 troy ounces) with a minimum margin requirement of 7%. The daily price range has been fixed at 5%