The Shanghai Gold Exchange (SGE) will roll out its Gold Benchmark Price on April 19 this year, according to proposed specifications seen by FastMarkets.

Detailed information on the benchmark is expected at the end of March but below sets out the draft rules, as FastMarkets understands them.

   Trading Code: SHAU
   Price quotation: yuan (CNY) per gram
   Trading method: collective pricing trading
   Contract size: 1 kilogram per lot
   Tick size: 0.01 yuan per gram
   Minimum offer/bid per member: 1 lot
   Maximum offer/bid per member: 30,000 lots
   Volume difference (imbalance): 400 kilograms – an auction can conclude with a difference of up to 400 kg between the entered buying and selling interest.
   Auction start time: 10:15 and 14:30 Beijing time
   Auction timetable: the first round – 60 seconds for all members of SGE plus 10 seconds for supplementary offer/bids from core members; from the second round until the last round – 30 seconds for all members of SGE plus 10 seconds for supplementary offer/bids from core members
   Delivery method: physical delivery from SGE-approved vaults
   Delivery time: T+2
   Delivery fineness: all one-kg gold bars recognised by the SGE with a purity of no less than 99.99%
   Quality standards: physical products produced by companies that are recognised by the SGE and meet the standards of SGEB1-2002; bars produced by suppliers recognised by the LBMA (London Bullion Market Association) are also accepted.
   Delivery fee: none