Daihatsu iron ore options will go public on December 9

The CSRC held a press conference on November 22 to announce the approval of the Dalian Commodity Exchange to start trading iron ore options from December 9. As the first industrial options listed by a large commercial firm, the listing of iron ore options will further enrich China's derivative system, which is of great significance for promoting the derivatives market to serve the steel industry and building an international pricing center for iron ore. After iron ore options are listed, it will be beneficial to build a market system for futures and options markets, over-the-counter and over-the-counter markets, spot and derivative markets, as well as the interconnection and mutual promotion of domestic and overseas markets, said the relevant officials of major trading firms Further improve the product system of iron ore derivatives market. At present, the major trading companies have completed the upgrade of iron ore option contract, parameter design and technical system. The next step will be to optimize the contract rules and steadily advance the preparation for listing, taking into account market opinions and suggestions. Iron ore options are based on iron ore futures. Since October 2013, iron ore futures listed on the market, the overall smooth and orderly operation of the market structure has continued to improve, more than 1200 steel mining enterprises have been deeply involved in futures trading. In the first 10 months of this year, corporate clients accounted for 45 per cent of positions, up nearly 5 percentage points from the same period last year. In May 2018, iron ore futures were introduced to foreign traders, attracting more than 170 overseas customers from 15 countries and regions, and its international influence continued to grow. At present, China's iron ore futures has developed into the largest iron ore derivatives in the world, which has obvious advantages in market scale, industrial participation and international influence, and has laid a good market foundation for iron ore options listing. Market participants believe that commodity options with insurance, enhanced earnings and volatility management and other functions, support options portfolio and other diversification, flexible trading strategies. After iron ore option listing, it will join forces with iron ore futures, provide the steel industry chain with personalized risk management tools, promote the trading mode innovation, such as weighted trade, and help enterprises more accurately hedge the risk of price fluctuations. At the same time, because of the strong linkage between commodity options and commodity futures, after iron ore options are listed on the market, traders can carry out arbitrage and hedging transactions between the futures and options markets, and effectively manage the fluctuation of the underlying futures prices And to a certain extent to enhance the quality of futures market operation, further play derivatives market functions.