Recently, the China Securities Regulatory Commission (CSRC) has approved the trading of the corn starch futures on Dalian Commodity Exchange (DCE). The specific listing time for the contracts will be set by DCE according to the preparatory progress.
As a processed corn product, the corn starch is the basic raw material for starch sugar, beer, medicine and many other industrial products, taking an important position in the national economy. China is the world's second largest producer and consumer of corn starch. In 2013, the production was around 23.5 million tons with a production value of about RMB 65.8 billion and an apparent consumption of about 23.4 million tons. In recent years, the prices of the corn starch have fluctuated significantly and frequently, with the spot enterprises showing strong demand for hedging. The trading of the corn starch futures will help improve the futures product line of the corn industry chain, expand the service of the futures market for the real economy, and perfect the pricing mechanism, providing a hedging instrument for the related enterprises and promoting the healthy development of the industry.
Attachment:
Official Reply on Dalian Commodity Exchange Carrying out the Trading of Corn Starch Futures
November 21, 2014
China Securities Regulatory Commission
Dalian Commodity Exchange:
Your Request for Instructions on Listing the Corn Starch Futures on Dalian Commodity Exchange (DCE Issuance No. 194 [2014]) has been received. In accordance with the relevant provisions of the “Regulations on Management of Futures Trading” and the “Measures for Management of Futures Exchanges”, the following reply is hereby made:
Your organization of trading of the corn starch futures has been approved.
The specific listing time of the corn starch futures contracts shall be set by your exchange in accordance with the market conditions and the progress of the preparatory work after we officially approve the relevant contracts.
Your exchange shall make overall arrangements and careful organization, strengthen communication and coordination, improve the supervisory system and measures for risk control, develop the response plans and effectively guide the public opinions, so as to ensure the smooth introduction and stable operation of the corn starch futures.