What are Non-Deliverable Forwards?

A forward contract transaction is a transaction method in which the buyer and the seller sign a forward contract, which stipulates that physical goods will be delivered in a certain period in the future.

Forward contract transaction

A forward contract transaction is when a buyer and a seller sign a forward contract, stipulating that

Forward

Forward

1. Generally it is the buyer and seller

Forward

With the increase of national supervision and the deepening of governance and rectification,

Since the establishment of the pilot futures exchange, the Ministry of Domestic Trade and the China Securities Regulatory Commission have repeatedly stated clearly that disguised futures trading cannot be performed under the name of medium and long-term contract transactions, but some markets refuse to implement them, which seriously affects the healthy development of the Chinese spot market. , Is not conducive to rectify the circulation order and curb inflation.

In accordance with the spirit of the relevant instructions of the leadership of the State Council, the following adjustments were made:

1. As of the date of this notice, all medium and long-term contract transactions for all commodities are suspended. For wholesale markets and futures exchanges that have conducted mid-to-forward contract transactions, open positions can be closed before the contract expires or physical delivery can be made on the delivery date. No new mid-to-forward contracts can be launched.

2. All relevant wholesale markets and futures exchanges shall take effective measures to coordinate all trading links and make a smooth transition.

3. The provincial, district, and municipal people's governments are requested to actively and steadily do good aftercare work to ensure normal production, circulation, and social order. And related

A letter of implementation to the Ministry of Internal Trade.

4. Spot wholesale transactions in various wholesale markets continued. In order to prevent confusion of boundaries and protect and develop normal spot wholesale transactions, in accordance with the spirit of the leadership of the State Council, the Ministry of Internal Trade will work with relevant departments to formulate market management measures for medium and long-term wholesale transactions.