.jpg)
Li Zhengqiang, Chairman of Dalian Commodity Exchange (DCE), said on October 16 that DCE has preliminarily realized the strategic transformation from a single and closed commodity futures exchange to a diversified and open comprehensive derivatives exchange. Next, it will accelerate the launching of more futures and options products, facilitate the opening-up of more mature products, bring trading convenience for domestic and overseas participants, and keep enriching the connotation of a diversified and open development.
Preliminarily realizing strategic transformation
In recent years, the Chinese futures market supply has been continuously increased, market structure optimized, market rules improved, market quality enhanced, opening-up scale expanded, and its capacity of serving the real economy strengthened, making it an important component of the capital market.
Over the past 10 years, the average annual growth of the trading amount of the Chinese commodity futures reached 23.7% and the trading amount has ranked among the best in the world for 9 consecutive years. In the first half of this year, the trading amount, open interest and trading volume of commodity futures were 1.4 billion contracts, 14.39 million contracts and RMB 96 trillion, accounting for 48%, 18.7% and 27% of the total in the world, respectively. The steady growth of its market scale has made the Chinese futures market gradually become a major risk management market in the world.
DCE is one of the 4 major futures exchanges in China. Li Zhengqiang introduced that DCE has listed 16 commodity futures products in total over the past 25 years and launched the 1st commodity options, soybean meal options, in 2017, thus preliminarily forming a diversified derivatives instrument system with both futures and options. In particular, DCE successfully launched the business of ushering in overseas trading participants for the 1st mature futures product in China, the iron ore futures, making DCE a provider of the Hong Kong ATS (automatic trading service). Besides, it has set up an overseas representative office in Singapore and initially formed an open derivative market pattern that connects the domestic and international markets.
Li Zhengqiang said that in recent years, DCE has joined hands with futures companies, insurance companies and other financial institutions to launch the “futures + insurance” to serve the “agriculture, rural areas and rural residents” and implemented some service industry pilots like over-the-counter options, basis trading and warehouse receipt replacement, and it has explored to construct a multi-layered derivative market including both the floor market and the over-the-counter market. Besides, the price-finding and risk management functions of the DCE market have preliminarily displayed.
Li Zhengqiang believed that DCE has preliminarily realized the strategic transformation from a single and closed commodity futures exchange to a diversified and open comprehensive derivatives exchange over the past 25 years, especially the recent 5 years.
Continuing to promote diversity and opening-up
Li Zhengqiang said that DCE will realize the steady growth from 1 to N and steadily facilitate the construction of a world’s first-class derivatives exchange on the basis of the preliminary strategy transformation and in accordance with the guideline of “consolidating, enriching and improving”.
First, DCE will continue to optimize the contract rules and operation management mechanism, expand market services, improve market participant structure, maintain market stability and keep consolidating the results of diversified and open development;
Second, DCE will accelerate the launching of more futures and options products, further integrate the businesses of the over-the-counter market, promote the opening-up of more mature products, actively bring trading convenience to domestic and overseas trading participants, and keep enriching the connotation of diversified and open development;
Third, DCE will keep enhancing the quality and efficiency of market operation, strive to provide the global market with open and transparent commodity futures prices of wide representativeness and settled by RMB, and continue to improve DCE’s core competitiveness of serving the real economy and its international influence.
