6 option varieties will be listed on October 20, and the total number of all market varieties is expected to exceed 130

Following the launch of caustic soda and paraxylene futures and options in September this year, another 6 options will be available. Recently, the CSRC has approved the registration of options for staple fiber, soda ash, manganese silicon, ferrosilicon, urea and apple in Zhengzhou Commodity Exchange (hereinafter referred to as "Zhengzhou Commodity Exchange"). According to relevant arrangements, six options will be listed and traded from October 20, which means that the total number of futures and options in the market is expected to exceed 130.

Several insiders said that the gradual expansion of futures and options will provide effective risk management tools for various industrial enterprises.

According to relevant arrangements, the options of staple fiber, soda ash, manganese silicon, ferrosilicon, urea and Apple will be listed and traded from October 20, 2023, and 8:55-9:00 on that day will be the time for collective bidding; Zheng Shang Exchange calculates the benchmark price of each option contract according to the option pricing model. Among them, the volatility parameter is determined according to the historical volatility of staple fiber, soda ash, manganese silicon, ferrosilicon, urea and apple futures contracts, and the interest rate parameter is the one-year loan market quotation rate (LPR).

In terms of night trading, from the evening of October 20, only short fiber and soda ash option contracts will carry out night trading, and the trading time is the same as that of corresponding futures contracts. However, there is no overnight trading for options contracts of manganese silicon, ferrosilicon, urea and Apple. At the same time, in terms of the maximum number of orders placed, the maximum number of orders placed each time for price limit orders is 100, and the maximum number of orders placed each time for market price orders is 2.

Position limit is one of the important factors concerned by market participants. It is reported that the speculative positions of staple fiber, ferrosilicon and urea option contracts held by non futures company members and customers in a month are all 10000, while the speculative positions of soda ash option contracts are 20000, manganese silicon option contracts are 30000, and Apple option contracts are 1000; The sum of speculative and arbitrage positions shall not exceed twice the speculative position limit. In addition, the position limit of short fiber, ferrosilicon and urea option market makers is 20000, the position limit of soda ash option market makers is 40000, the position limit of manganese silicon option market makers is 30000, and the position limit of Apple option market makers is 3000.

Shen Zhuofei, a researcher of SDIC Andersen Futures Options, said that the launch of option tools will provide new risk management tools for corresponding industrial enterprises. Taking manganese silicon and ferrosilicon options as examples, it will more effectively meet the personalized risk management needs of upstream and downstream of the industrial chain. It can be expected that after the listing of option instruments, there will be more and more innovative ways of combining basis trade, futures and options in related industries, and the derivatives market will further improve its function in serving the real economy.

The futures market is one of the important financial markets serving the real economy. In the view of many senior executives of futures companies, futures intermediaries can only provide more quality services if they work in many ways.

"Continuously increasing the number of futures and option instruments is an important way to serve various industrial enterprises, but it is far from enough for futures companies." Ma Huaxuan, general manager of Guoyuan Futures, told reporters that in addition to providing true and effective prices, the derivatives market should also promote the optimal allocation of resources, provide procurement Diversified services such as sales and financing. For futures intermediaries, we should start from the following aspects: first, strengthen the industrial service capacity; The second is to deepen the "insurance+futures" model; the third is to innovate the industrial service model; and the fourth is to strengthen the application of financial technology.

Zhao Changtao, general manager of Huatai Futures, also said that in order to improve the ability to serve the high-quality development of the real economy, futures companies can also actively promote the digital transformation led by science and technology, as well as the business transformation led by innovation, and focus on building a customer-centric integrated service system to help real enterprises achieve comprehensive risk management. "In recent years, the company has continued to build a vertical and efficient service organization with a combination of headquarters and branches, accelerated the construction of a technology-based platform business development model, strengthened the strategic positioning of" science and technology leading ", and also explored the creation of an investment banking type risk management system, focusing on building an RMC (risk management consultant) with professional risk management service capabilities Team, use a package of futures derivatives tools to help enterprises solve the demand for all-round risk management in production, supply and marketing. "

key word: option futures ferrosilicon contract