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From 21:00 on July 4 to 2:30 on July 5, Dalian Commodity Exchange (DCE) succeeded in completing the first night trading section with a trading volume of 311,400 contracts (bilateral, the same below) including 158,000 contracts for Coke and 153,400 contracts for RBD Palm Olein and the eye-catching performance among the 8 products listed on the night trading on the night. Generally speaking, the night trading saw active participation of market players, brisk trading of the products and rational fluctuations of contract prices with the structure of the participating clients on the night basically the same as the previous market structure.
In the night trading section, the dominant Contract J1409 of Coke opened at RMB 1,111, a gap drop of 0.27%, with the high at RMB 1,112, the low at RMB 1,102 and a fluctuation of 0.90%, closed at RMB 1,106, down 1.25%. The Contract 1409 of Coke recorded the first transaction, with a client of Jintai Futures as the buyer and a client of Galaxy Futures as the seller. In the entire night trading section, Coke reported a total trading volume of 158,000 contracts, accounting for 40.20% of the trading volume of July 4, the last trading day. At the end of the night trading section, the open interest of coke increased by 8,286 contracts to 393,800 contracts.
In the night trading section, the dominant Contract P1501 of RBD Palm Olein opened at RMB 5,780, a gap drop of 0.20%, with the high at RMB 5,810, the low at RMB 5,766 and a fluctuation of 0.76%, and closed at RMB 5,792, down 0.03%. The first transaction was achieved on Contract 1409, with a client of Guotai Junan Futures as the buyer and a client of Yingda Futures as the seller. In the entire night trading section, RBD Palm Olein recorded a trading volume of 153,400 contracts, accounting for 61.05% of the trading volume on July 4, the last trading day. At the end of the night trading section, the open interest of RBD Palm Olein increased by 12,500 contracts to 706,400 contracts.
The first night trading section saw a total of 148 members participate in the trading, with the clients participating in the trading of Coke and RBD Palm Olein accounting for 20.06% and 49.04% of those on July 4, the last trading day. The structures of the participating clients were basically in line with the previous market structures, with the trading volume of the corporate clients for the Coke accounting for 31.55% of the total and the trading volume of the corporate clients for RBD Palm Olein accounting for 28.73% of the total.
Market analysts pointed out that with regard to the price trend, in the night trading the downward coke reflected the fundamentals, with the price fluctuating between RMB 1,103 and 1,109, and the RBD Palm Olein continued the fluctuating trend of the last trading day. The price fluctuations of the two products were rational.
To participate in the first night trading of DCE, the futures companies made full preparations. Wang Chen, deputy general manager of Guofu Futures, said that the clients of the company were eager to participate in the night trading. In the first night trading of DCE, the company arranged for special risk control personnel for the risk control work on the night shift. Before the opening of the night trading, the risk control personnel made phone calls to the clients holding positions of Coke and RBD Palm Olein after the settlement of the previous trading day to remind them to pay attention to the risks and adjust the margins and positions timely; after the opening of the night trading, the risk control personnel once again informed the clients of the price changes and some absent clients of the market situation on telephone. Wang said that since the listing, RBD Palm Olein and Coke have seen smooth operation and been well received by the investors, with the market sizes and the correlations with relevant products at the medium level among DCE’s products. In the initial stage of the introduction of the night trading, the selection of the two products is conducive to testing all the processes of the market so as to ensure the steady start and sound operation of DCE’s night trading. According to him, the company has quite a few spot clients involving in the palm oil, most of whom participated in the night trading on the night. He hoped that DCE could introduce other products in the night trading as soon as possible to facilitate the market risk management in the industry.
The brisk performance of Coke and RBD Palm Olein in the first night trading section shows that the two trial products for the night trading have been well received by the market. Xu Hongzhi, marketing director of Dalian business department of Hongyuan Futures, believed that the night trading of DCE has pushed forward the continuous trading of China’s futures market. In terms of the listed products, the first products introduced by DCE in the night trading embody profound considerations. As DCE’s characterized products, the coal-coke-steel products are advantageous in China’s striving for the pricing power on the international commodity market in the future. The trial for the Coke as the representative product of the sector in the night trading will play a positive role in striving for the pricing power for the products in the sector when the market is opened up in the future. DCE’s selection of the product shows its guideline of taking the initiative to adapt to the internationalization as soon as possible in the current situation of deepened economic globalization and market integration; the selection of RBD Palm Olein reflects the traditional criterion for selecting the products for the night trading, as the product is highly related to the soybean oil futures in American market, representing the series of the agricultural products of high relevance with the related products on the international market, and the introduction of the product will play a prominent role in mitigating the risk of overnight price gaps. He said that last Wednesday (July 2) the soybean oil fell sharply on American market, and the next day saw the RBD Palm Olein futures in Dalian drop by 200 points at the opening, with some investors bearing greater risks. With the extension of the trading hours after DCE’s introduction of the night trading, the investors will be able to effectively prevent and control such risks, and the capacity of the futures market for serving the industries will be further improved.
To participate in the first night trading of DCE, the futures companies made full preparations. Wang Chen, deputy general manager of Guofu Futures, said that the clients of the company were eager to participate in the night trading. In the first night trading of DCE, the company arranged for special risk control personnel for the risk control work on the night shift. Before the opening of the night trading, the risk control personnel made phone calls to the clients holding positions of Coke and RBD Palm Olein after the settlement of the previous trading day to remind them to pay attention to the risks and adjust the margins and positions timely; after the opening of the night trading, the risk control personnel once again informed the clients of the price changes and some absent clients of the market situation on telephone. Wang said that since the listing, RBD Palm Olein and Coke have seen smooth operation and been well received by the investors, with the market sizes and the correlations with relevant products at the medium level among DCE’s products. In the initial stage of the introduction of the night trading, the selection of the two products is conducive to testing all the processes of the market so as to ensure the steady start and sound operation of DCE’s night trading. According to him, the company has quite a few spot clients involving in the palm oil, most of whom participated in the night trading on the night. He hoped that DCE could introduce other products in the night trading as soon as possible to facilitate the market risk management in the industry.
The brisk performance of Coke and RBD Palm Olein in the first night trading section shows that the two trial products for the night trading have been well received by the market. Xu Hongzhi, marketing director of Dalian business department of Hongyuan Futures, believed that the night trading of DCE has pushed forward the continuous trading of China’s futures market. In terms of the listed products, the first products introduced by DCE in the night trading embody profound considerations. As DCE’s characterized products, the coal-coke-steel products are advantageous in China’s striving for the pricing power on the international commodity market in the future. The trial for the Coke as the representative product of the sector in the night trading will play a positive role in striving for the pricing power for the products in the sector when the market is opened up in the future. DCE’s selection of the product shows its guideline of taking the initiative to adapt to the internationalization as soon as possible in the current situation of deepened economic globalization and market integration; the selection of RBD Palm Olein reflects the traditional criterion for selecting the products for the night trading, as the product is highly related to the soybean oil futures in American market, representing the series of the agricultural products of high relevance with the related products on the international market, and the introduction of the product will play a prominent role in mitigating the risk of overnight price gaps. He said that last Wednesday (July 2) the soybean oil fell sharply on American market, and the next day saw the RBD Palm Olein futures in Dalian drop by 200 points at the opening, with some investors bearing greater risks. With the extension of the trading hours after DCE’s introduction of the night trading, the investors will be able to effectively prevent and control such risks, and the capacity of the futures market for serving the industries will be further improved.
