On the 20th, options of staple fiber, soda ash, manganese silicon, ferrosilicon, urea and Apple were listed and traded in Zheng Shang Stock Exchange. With the increase of the number of commodity options listed in China in recent years, and the gradual expansion of the scale of participation in the commodity option market, the role of commodity options in promoting enterprise risk management is prominent.
After the close on October 19, Zheng Shang issued six option contract benchmark prices, including staple fiber. According to the Futures Daily reporter, Zheng Shangsuo calculates the benchmark price of each option contract according to the option pricing model. Among them, the volatility parameters are 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).
According to the contract, the trading units of the six options contracts, such as staple fiber, are all primary futures contracts; the minimum change price of staple fiber, soda ash, urea and apple options is 0.5 yuan / ton, and the minimum change price of manganese-silicon and ferrosilicon options is 1 yuan / ton; the range of price limit is the same as that of the underlying futures contract; the mode of exercise is American.
It is understood that the first day listing contracts include short fiber option contracts with underlying months 2401 and 2402, soda ash option contracts with underlying months 2401, 2402, 2403, 2404, 2405, 2406, 2407, 2408 and 2409. manganese silicon option contracts with underlying months 2401, 2402, 2403 and 2405, ferrosilicon option contracts with underlying months 2401, 2402 and 2403, urea option contracts with underlying months 2401, 2402, 2403 and 2405 Apple options contracts with underlying months of 2401, 2403 and 2405.
In addition, from tonight, staple fiber and soda ash options contracts will be traded at night, and the trading time is the same as that of staple fiber and soda ash futures contracts. There is no night trading in manganese silicon, ferrosilicon, urea and Apple option contracts.
"in recent years, the listing of options in China has been accelerated, and at present, it has fully covered the sectors of finance, agricultural products, energy, chemical industry, black, non-ferrous and precious metals. Due to the increasing volatility of the commodity market and the increasing willingness and internal demand of enterprises and investors to hedge risk, options, as a fine risk management tool, are widely favored by enterprises and investors by virtue of their non-linear advantages. it has become an effective tool for investment and risk hedging management. In addition, the continuous innovation of options not only provides a wealth of risk management tools, but also facilitates enterprises and investors to build diversified trading strategies to meet the needs of different types of transactions, such as asset allocation, arbitrage, direction, volatility and so on. " Founder medium-term futures options senior analyst Niu Qiule said.
Taking PTA options as an example, the average daily trading volume in 2020, 2022 and 2023 was 48500 lots, 125600 lots and 284700 lots respectively, and 802400 lots in the first three quarters of 2023. From this set of data, we can see that the transaction scale of PTA options shows a trend of rapid growth year by year, which fully shows that the demand of industry and investor groups for PTA options is increasing, and the degree of participation is gradually deepening. In recent years, with the continuous cultivation of exchanges and futures companies, options have become an important tool for industrial enterprises to carry out risk management. " One Germany futures options senior analyst Cao Baiyang told reporters.
"in this new stage, it has become the goal of most enterprises to apply derivatives to enterprise operation management to achieve fine risk management, reduce cost and increase efficiency." Cao Baiyang said that specifically, enterprises can formulate appropriate option strategies in the light of their own production and operation and spot circulation, and cooperate with futures tools in procurement or inventory preservation, so as to achieve the goal of accurate hedging and achieve the goal of "reducing costs and increasing efficiency". At the same time, the diversified position management measures of option tools also provide more optimization space for enterprise risk control, in order to create a multi-level three-dimensional risk management system. In addition, options provide an effective tool for industrial enterprises to further optimize and upgrade their trade models. At present, basis trade and entitlement trade are gradually being promoted in many industries. Weighted trade is a mode of integrating options into spot trade. compared with the traditional "one-mouth price" and base price model, weighted trade can make the cooperative relationship between upstream, middle and downstream enterprises more harmonious and stable, manage the risk of price fluctuation, meet the individual needs of different enterprises, and provide continuous assistance for the steady development of enterprises.
In Niu Qiule's view, with the deepening of China's financial reform, the further expansion of the options market will be accelerated, and there will be more options listed in the future. The further enrichment of the variety of options on the floor in China will not only help to promote the upgrading of risk management and trade patterns in related industries, but also lay a solid foundation for the opening up of China's capital market and strengthening China's voice in the international commodity market. Source: futures Daily