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In an effort to further enhance the functionality of the options market and better meet the market’s demand for using options tools in risk management, Dalian Commodity Exchange (DCE) announced on November 17th to extend the last trading day of 13 listed options products. According to the announcement, the last trading day of 13 listed options products, including soybean meal, corn, iron ore, will be extended from “the 5th trading day of the month before the delivery month of the underlying futures contract (the month before the delivery month)” to “the 12th trading day of the month before the delivery month of the underlying futures contract.” This revised rule will come into effect for the options contracts corresponding to futures contracts M2501, C2501, I2501, PG2501, L2501, V2501, PP2501, P2501, A2501, B2501, Y2501, EG2501, and EB2501.
As the announcement states, the revised rule shall apply to contract months of January 2025 and after, while the contract months before January 2025 shall follow the previous rules. Additionally, DCE reserves the right to adjust the last trading day in accordance with national statutory holidays. This rule amendment effectively extends the last trading day for options contracts by seven (7) trading days, providing further opportunities for traders to utilize options instruments in managing risks associated with short-term fluctuations in futures prices.
An official from DCE noted that DCE will keep a close watch on the operation of the options market, conduct in-depth market research, and optimize options contract rules, so as to enhance the overall functionality of the futures market.
