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On July 29, China Securities Regulatory Commission (CSRC) announces that it has approved Dalian Commodity Exchange (DCE) to launch No. 1 Soybean, No. 2 Soybean and Soybean Oil options on August 8, 2022. On the same day, DCE officially releases a notice on matters regarding the forementioned options contracts and the trading.
According to the notice, the upcoming options contracts of No. 1 Soybean, No. 2 Soybean and Soybean Oil basically follow the same design ideas and rules as those options contracts already listed on DCE, which means they’re also American style options. DCE will list the three options contracts for trading on August 8, and the night trading will also begin on the same day, with the general trading hours the same as their underlying futures. The contract months of the options to be listed on the first trading day will start from November 2022 (namely A2211, B2211 and Y2211 contracts) and cover all the listed contract months of their underlying futures respectively. The position limits of No. 1 Soybean, No. 2 Soybean and Soybean Oil options are 15,000 lots, 20,000 lots and 20,000 lots respectively. In addition, the notice also clarifies the listing prices, trading orders, exercise and fulfillment, related commissions, market maker mechanism and quotation inquiry, etc.
Market participants said that the design of the upcoming options contracts has not only drawn on the successful experience of the listed soybean meal options and others, but also made special arrangements according to their respective features, so as to ensure the market stability and facilitate their effective functioning.
