Trading error spooks China ETF options traders

Abnormally low premiums cause exchange to shut down, but market participants are unclear about the reason for the error

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The start of equity option trading in China has been overshadowed by a trading mistake on options linked to Shanghai's SSE 50 exchange-traded fund (ETF), which led to a temporary shutdown on the exchange and caused market participants to call into question the liquidity of the new market.

China launched equity option trading on February 9 and two days later Citic Securities, one of the eight market-makers designated by Shanghai Stock Exchange (SSE) to provide liquidity for the new market, quoted

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