Shanghai Futures Exchange Adjusts Hedging Position Limits for Silver and Copper
The Shanghai Futures Exchange recently announced adjustments to its automatic conversion standards for hedging position limits of Silver and Copper products. Starting from the last trading day in August 2026, non-futures company members, overseas special non-broker participants, or clients without hedging position limits for nearby delivery months will see their general month hedging position limits automatically converted. For silver contracts, this conversion will resume, while copper contract holders will face a temporary adjustment to zero lots.
The changes aim to streamline the process of adjusting position limits and provide clearer guidelines for market participants. The Shanghai Futures Exchange has not provided further details on why these adjustments are necessary or what impact they may have on the market. However, it is clear that this change will affect traders who do not have hedging position limits for nearby delivery months.