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To give full play to the economic functions of the futures market and make it better serve the real economy, recently, the China Securities Regulatory Commission (CSRC) approved the trading of the fiberboard and plywood futures on Dalian Commodity Exchange (DCE). According to the relevant provisions of the "Regulations on Management of Futures Trading” and “Measures for Management of Futures Exchanges", after the completion of all the preparations and relevant procedures, the CSRC will approve the listing of the fiberboard and the plywood futures contracts on DCE.
The fiberboard and the plywood are important products of the forest industry, with the upstream connected with the forestry and the downstream involving furniture, decoration, packaging, automotive manufacturing and many other industries. China is the world's largest producer and consumer of fiberboard and plywood. In 2012, China's output of fiberboard reached 55.54 million cubic meters with a consumption of 41.85 million cubic meters, and the plywood production amounted to 140 million cubic meters with a consumption of 130 million cubic meters.
Affected by fluctuations in raw material costs and the demand and other factors, the fiberboard and the plywood feature high price volatility, have greater impacts on the production and operation of the upstream and downstream enterprises. The trading of the fiberboard and plywood futures is conducive to promoting the formation of a rational and transparent price system, managing the risks of price fluctuation of entity enterprises, pushing the optimal allocation of forest resources and the upgrading of related industrial structures, and boosting the steady and healthy development of the forestry industry.
After careful research and in-depth survey, according to the actual situation of the spot market and the technical requirements for futures contracts designing, DCE has completed the designing of the contracts and the formulation of the rules for the fiberboard and the plywood futures, determined the contract objects with highly representative prices, drawn up appropriate trading, settlement and delivery systems and demonstrated the risk control measures such as the margins, price limits and position limits systems. On the premise of predictable, controllable and tolerable market risks, the CSRC will approve the listing of the fiberboard and plywood futures contracts on DCE in accordance with the provisions of relevant laws and regulations, directing and urging DCE and futures companies to effectively make preparations before the listing so as to ensure the smooth listing and safe operation.
Attachment:
Attachment:
Official Reply on DCE Launching Trading of Fiberboard and Plywood Futures
Dalian Commodity Exchange:
Dalian Commodity Exchange:
The “Request for Instructions of the Listing of the Fiberboard and Plywood Futures on Dalian Commodity Exchange” sent by your exchange 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 official reply is hereby issued as follows,
1. The trading of fiberboard and plywood futures organized by your exchange has been approved.
2. Your exchange shall determine the specific time of the listing of the contracts on the basis of the market conditions and the progress of the preparations after our commission replies to and approves the related contracts.
We require your exchange to coordinate the arrangements, earnestly implement the organization, further make effective preparations before the listing, and pay attention to preventing and properly defusing the possible market risks, so as to ensure the smooth launching and stable operation of fiberboard and plywood futures.
The China Securities Regulatory Commission
October 17, 2013
