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Dalian Commodity Exchange (DCE) released a notice on July 19, in which it announced that the Hedging Management Electric System (hereinafter referred to as the “System”) will be launched for operation after settlement on July 26. Meanwhile, the hedging position-holding within the limit will no longer need application and the hedging limit can be used in any member that has opened an account, thus further optimizing the process of hedging management, reducing the hedging cost, and enhancing the efficiency of the hedging business.
The notice pointed out that, after the launching of the System on July 26, investors will not need to submit written application for hedging qualification and hedging position-holding limit, and relevant business will be handled through the System. It also pointed out that after the launching of the System, non-members and customers of the futures company will no longer need to submit application for more hedging position-holding limit within the speculation position-holding limit and, having obtained the hedging qualification for relevant varieties, they can establish hedging position-holding within the speculation position-holding limit by themselves. Besides, the hedging position-holding limit obtained by the customers can be used in any member that has opened an account and will not be restricted in applied members.
Relevant person from DCE introduced that the System has achieved the electronic interaction and the paper-free office operation between the data flow at the members’ end and the member service system, which can effectively simplify members’ work, protect customers’ information, and support the full implementation of DCE’s hedging business. Meanwhile, it can also allow DCE to grasp the approval and the usage of hedging limit of its members and customers and enhance the service level of DCE’s hedging management.
Market researchers pointed that the launching of DCE’s Hedging Management Electric System will not only provide its members and customers with a simple and convenient electric operation measure for the hedging business. More importantly, the System will provide them with two “open” during the hedging business – the open of position-holding management within the limit, the open of no more approval and hedging limit, and the wide use in any member. All these measures are the first time to be introduced in the market and mark the two major breakthroughs of China’s futures market in the hedging management service, showing DCE’s support and encouragement to the hedging business and its market-oriented management concept.
It is learnt that DCE implemented the new Measures of DCE’s Hedging Management on October 8, 2012. The Measures, having referred to the experience of the international market, implements the hedging qualification recognition system and reduces the procedures for approving hedging. At the same time, DCE has, among all domestic futures exchanges, first puts forward the measures of no approval for customer’s hedging position-holding within the limit and the hedging limit’s use in any member with an account, which will be implemented after the operation of the technical system. The current launching of the System will not only provide technical support for the full implementation of the new Measures, but also offer protection for the practice of the creative measures of the hedging management service.
Market participants predicted that as the launching of the System will greatly facilitate members and customers’ hedging application and members and customers can use their position-holding limit more conveniently and freely, it will greatly arouse their enthusiasm in hedging and enhance the efficiency and the amount of the hedging business, thus further improving the operating efficiency of the Dalian futures market and enhancing its level of serving the real economy.
