Shanghai Futures Exchange to Zero Automatic Hedge Quota Conversion for Aluminum, Cast Aluminum Alloy, Lead from Nov 2026

The exchange is closing a long-standing operational loophole: hedgers who never applied for near-delivery-month quotas could previously carry general-month positions into the delivery window via automatic conversion. Removing that default shifts the burden onto participants to secure quotas explicitly, which raises compliance costs for smaller non-futures-company members and overseas special participants in aluminum, cast aluminum alloy and lead. The delayed effective date gives the market time to adapt, so whether quota applications rise ahead of the change and whether liquidity in the near-delivery month thins out are the open questions.