The closing ceremony of the Commodity Futures & Capital Operation Senior Management Course – the 4th Session of Coal, Coking and Steel Training (the “4th Session of Training” for short) of Dalian Commodity Exchange (DCE) was held in Shanghai Advanced Institute of Finance (SAIF) of Shanghai Jiao Tong University on May 11. Attending the ceremony were DCE Vice President Wang Yufei and SAIF Vice President Yan Hong.
The 4th Session of Training, co-sponsored by DCE and SAIF, was officially launched on August 24, 2018. Participating in it were nearly 70 senior managers from enterprises in the coal, coking and steel industry chains, futures companies and banks. The 4th Session of Training lasted for 10 months and completed 6 modules in Shanghai, Beijing and Dalian. A dozen of senior experts, including DCE Chairman Li Zhengqiang, has delivered comprehensive and diversified courses, such as the “Derivatives Market Development & Real Economy Service”, the “Practice of Risk Management on Commodity Futures & Options”, the “Hedging of Ferrous Derivatives” and the “Application and Practice of OTC (over-the-counter) Derivatives”. These courses have helped trainees and their enterprises to have a deeper understanding on the futures market and make the best of futures and derivatives instruments to manage risks, thus facilitating their corporate operations and development.
Wang said in her speech that the training achieved its goals of deepening the understanding among all trainees, intensifying their understanding of the modern market concept, enriching their knowledge structure and strengthening their risk management skills. She noted that most trainees were elites and mainstays in the ferrous industry. She hoped that they would apply what they’ve learnt and facilitate operations of their companies.
Wang introduced that DCE rolled out the iron ore futures’ internationalization, the ethylene glycol futures and corn options, the commodity swap business and the expanded “insurance + futures” pilot successfully last year, winning the decisive victory in the strategic transformation, characterized by diversified opening-up and taking firm steps in building a world-class derivatives exchange. In 2018, DCE maintained a stable market operation, and its open interest continued to rank the 1st among the three domestic commodity futures exchanges and the 12th in terms of total trading volume of futures and options in the world. It had kept improving its market operation quality and market structure, with the trading volume and open interest of corporate clients accounting for 27% and 52% respectively, up by 5% and 6% respectively, compared with 2017, corporate clients gradually becoming the main force in the market. Thus, its market function had been further displayed. The futures-spot price correlation of Soybean Oil, RBD Palm Olein, PVC and PP all exceeded 0.9, and DCE prices had been the major basis for spot trading, the development of agri-products price insurance and the index number construction.
Wang stated that DCE had earnestly realized in years of market cultivation that leading enterprises were possessed with stronger economic power, higher technical strength and better management teams, making them the main force leading the industry development. Giving full play to the demonstration role of the leading enterprises would be of great significance to increase the risk management level of the whole market and facilitate the sound development of the whole industry. DCE had taken the opportunity of organizing the EDP training program to serve the market and the industry. She introduced that DCE had carried out the EDP training program for middle and senior management together with famous universities in China since 2013. It had organized 16 sessions including agricultural products, petrochemicals and ferrous products. DCE was willing to integrate the EDP training program into spot enterprises permanently, thus making them the cradle of cultivating high-end talents.