To further enhance market institutions’ understanding on the commodity swap business, Dalian Commodity Exchange (DCE) has organized two sessions of training on commodity swap in Shanghai and Shenzhen on December 12 and 13, respectively. About 550 senior managers and business personnel from entity enterprises, commercial banks, securities companies, fund companies, futures companies and risk management subsidiaries took part in the training.
DCE Vice President Wang Weijun said in the speech that DCE would officially launch the commodity swap business on December 19. Commodity swap is an important component of the commodity derivatives market system. The launching of the commodity swap business would help to form an integrated mutual-promotion risk management ecosphere together with the floor market tools and would better meet the demand of entity enterprises and market participants on individualized risk management, reduce the threshold and cost of market access and increase market capacity, improve futures market’s efficiency and scope of serving the real economy, and further optimize the multi-layered commodity market system.
During the training, the Commodity Swap Business Team of the DCE Clearing Department made an introduction on the rules, the over-the-counter platform plan and the procedures of opening an account and other operations for commodity swap. Trainees said that the training strengthened their understanding on the scheme, rules and operations of the commodity swap business and the influence of this over-the-counter business in the international derivatives market on the risk management of enterprises and the operation of relevant institutions. They hoped to engage in the commodity swap soon and guide and serve relevant institutions to make use of this new instrument, new platform and new market.
A futures company’s business official said that the launching of the commodity swap business of DCE has provided futures companies with more instruments of serving the real economy and the asset allocation of institutions. For risk management subsidiaries in particular, it can give full play to the role of the floor and over-the-counter markets as a bridge and build a closed-loop business mode of connecting and hedging positions, making it a key part in the swap exchange mechanism.
