China News Service, Dalian, December 12 (Reporter Yang Yi) The Dalian Commodity Exchange (hereinafter referred to as "DCOM") issued an announcement on the 12th to solicit opinions and suggestions on the pig futures contract and related rules.
As the world's largest animal husbandry breed and China's largest agricultural breed, the scale of China's live pig market has exceeded one trillion yuan (RMB, the same below).
The upstream and downstream industrial chain of live pigs involves feed, breeding, veterinary medicine, slaughter, food and other fields, directly associated with tens of thousands of enterprises and employing over 100 million people.
In February 2018, the China Securities Regulatory Commission formally approved the application for the establishment of the DCE pig futures project.
In April this year, the China Securities Regulatory Commission formally approved DCE to launch live pig futures trading.
In the draft of the contract and business rules announced this time, the hog futures contract trading code is LH, the trading unit is 16 tons/hand, the minimum price change is 5 yuan/ton, and the contract price limit is 4 of the settlement price of the previous trading day. %, the minimum trading margin is 5% of the contract value.
As China’s first live-body-based futures product, hog futures comprehensively learns from and adopts mature delivery models in the domestic and international markets. In terms of delivery methods, it implements vehicle-board delivery in parallel with factory and warehouse delivery, with daily delivery and one-off delivery options Combined, and matched with the cash delivery.
In order to ensure the smooth operation of the market, DCE will appropriately increase the margin and price limit of live pig futures based on the existing contract rules in the initial stage of listing to meet the needs of risk management.
According to market participants, the listing of hog futures is of great significance for serving the hog industry.
On the one hand, it provides an open, transparent and continuous price reference for the market through its function of price discovery.
On the other hand, hog breeding companies can use hog futures to hedge, transfer the risk of price fluctuations, and reasonably control the scale of breeding, so as to optimize the allocation of resources through market-based means and promote the long-term and healthy development of the industry.
(Finish)