[Explanation] On March 31, China's first commodity option - soybean meal option was listed for the 5th anniversary.
In the past five years, China has listed 20 commodity futures options, covering agricultural products, energy and chemicals, black, non-ferrous, precious metals and other sectors.
[Explanation] On March 31, 2017, Dalian Commodity Exchange successfully listed China's first commodity option - soybean meal option, which filled the gap of domestic commodity options and changed the history of the domestic commodity futures market that only had futures instruments for more than 20 years.
In the past five years, China's commodity options have developed rapidly. In 2021, the cumulative trading volume of commodity options nationwide is 215 million, with a cumulative trading value of 262.779 billion yuan, and the average daily open interest is 2.273 million, an increase of 97.33%, 134.31%, and 27.10% year-on-year respectively. .
After five years of careful cultivation by Dalian Commodity Exchange, the function of the options market has gradually come into play.
Through effective linkage with the futures market, it promotes price discovery in the futures market and relieves the pressure of price fluctuations in the futures market.
[Concurrent] Bi Hui, Senior Researcher of Baocheng Futures
For companies with stricter risk requirements, price risks can be hedged through a completely symmetrical combination of futures and options.
For the leading enterprises in the industry with stronger risk management ability and market judgment ability, they can better manage their risk exposure through asymmetric long or short option positions.
Since the buyer of the option does not have credit risk, even if the price of the futures fluctuates in an unfavorable direction, there is no risk of insurance recovery.
Therefore, from this point of view, the capital utilization efficiency of option hedging is higher.
[Explanation] Dalian Commodity Exchange has listed 8 options varieties of soybean meal, corn, palm oil, iron ore, liquefied petroleum gas (LPG), polypropylene, linear low-density polyethylene and polyvinyl chloride, with a total of 20,766 listed options contract.
Among them, the trading volume of soybean meal options ranked first in the domestic commodity options market for four consecutive years, and ranked first in the global agricultural product options market for two consecutive years.
In 2021, the trading volume of corn options and iron ore options will rank first and third in global agricultural options and metal options, providing effective risk management tools for real enterprises.
[Concurrent] Shi Xiaohong, Executive Manager of Futures and Derivatives Department of Dalian Commodity Exchange
In the next step, on the basis of doing a good job in supervision and ensuring the stable operation of the market, DCE will firstly continue to expand options varieties according to the needs of the market and industrial customers; secondly, optimize the options contract rules to improve the quality and function of the options market; thirdly, strengthen Cultivating corporate customers and improving the level of the futures market serving the real economy.
Reporter Yu Ruizhai reported from Dalian, Liaoning
Responsible editor: [Cheng Chunyu]