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The 13th China International Oils and Oilseeds Conference (CIOC), jointly organized by Dalian Commodity Exchange (DCE) and Bursa Malaysia Derivatives (BMD), was held in Guangzhou on November 14. DCE CEO Wang Fenghai said in the speech that DCE will respond to the Belt & Road Initiative and build an international oils and oilseeds futures market settled by RMB to serve international participants.
Wang Fenghai said that oils and oilseeds is a traditional advantage product of DCE. Over the past 25 years, the oils and oilseeds futures market has been in the front position in market construction and serving the real economy. First, the oils and oilseeds futures is the soundest section in the products and instruments system of DCE to promote the key breakthrough in the strategic transformation of DCE. Second, as a key product section supporting the sustainable development of DCE, it has always taken a critical position in building DCE into a futures trading center. Third, it is an important experimental field and pioneer for the institutional innovation of Dalian futures market and has become one of the most efficient products in the domestic market. Fourth, it has been fully functioning and become a forerunner of industry service and a leader of service innovation for DCE.
He said that the global economy is encountering increasing uncertainties. In particular, the agricultural supply-side structural reform, the changes in import soybean trade pattern, the epidemic in hog feeding industry and other factors have profoundly influenced the oils and oilseeds market this year and raised new requirements on the further development and functioning of the oils and oilseeds futures market. In this context, DCE has adapted to the changes of the spot market development and the demand of enterprises, kept improving itself and expanded the depth and width of the oils and oilseeds industry service since the beginning of this year.
The first is to further cultivate and develop the options market, promote the internationalization of oils and oilseeds, and strengthen the construction of a diversified, open and comprehensive derivatives exchange. On the premise of controllable risks, DCE will further improve the suitability system of options investors, accelerate the launching of options portfolio margin business, enrich the options trading orders, continue to optimize the market maker system, and further satisfy participants’ risk management demand with reducing participating cost and improving market efficiency as the core. Besides, it will respond to the Belt and Road Initiative, further advance the opening-up of No. 1 soybean, No. 2 soybean and RBD palm olein, and build an international oils and oilseeds futures market settled by RMB for international participants.
The second is to keep improving the contract rules and systems and further enhance the market operation efficiency. DCE will speed up the revision and improvement of the contract rules of No. 1 soybean and further vitalize the No. 2 soybean contract by optimizing the futures dealers system, thus bringing convenience for entity enterprises to involve in and make use of the futures market.
The third is to further explore and optimize the new industry service mode to better serve rural revitalization and the real economy. On the basis of the previous year’s pilot programs, DCE has launched the “Peasants’ Income Guarantee Plan” integrated with several business modes and involving several kinds of participants this year. Up till now, 23 soybean projects have been registered, involving spot goods of nearly 300,000 ton and guaranteeing nearly 8,000 farmer households and 2-million-mu land of 64 cooperatives. It will continuously cultivate the oils and oilseeds industry, integrate all the resources, keep deepening the “insurance + futures” pilot, advance the “Peasants’ Income Guarantee Plan”, and further intensify the “agriculture, rural areas and rural residents” and industry risk management service through such market services as the construction of industry integration cultivation base and the training on “agriculture, rural areas and rural residents”.
Wang Fenghai said that DCE will make good preparations for the listing and trading of MEG futures and corn option, promote the research, development and listing of polished round-grained rice, hog and chili futures and iron ore option, and greatly facilitate the over-the-counter market construction through warehouse receipts service, swaps and basis. In addition, it will keep optimizing the contract rules and systems and enhancing the market operation efficiency, cement the industry and market services in a larger scale, and enhance the market’s capacity and level of serving the real economy.
